Roswell!

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Investigative Reporting

Roswell Secrets!

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FURTHER SECRETS OF ROSWELL

By:

Steve Erdmann

Persistence is one word that best describes the previous books by UFO investigators Thomas J. Carey and Donald R. Schmitt, authors of WITNESS TO ROSWELL and INSIDE THE REAL AREA 51. Persistence is also a watchword in their book THE CHILDREN OF ROSWELL.

“We now know that the American government stooped to the lowest level of humanity by going so far as to issue death threats to child witnesses.  This should inform the reader of two things; there was a big secret to be kept…and the secret keepers were willing to go to any lengths to keep it.”

Ben Hensey, Sci-Fi Fact or Fakes, Paranormal Files, foreword.

America was besieged by reports of strange crescent-shaped objects, particularly in the West, and especially around the 509th Atomic Bomb Wing of Roswell, Mexico in the summer of 1947. A head of Counter Intelligence Corps was sent (and later denied what he found). The Army base closed-down for one week under high security, and any visitors refused. A major sense of hidden panic prevailed Roswell overall. 

(THE CHILDREN OF ROSWELL: A Seven-Decade Legacy of Fear, Intimation, and Cover-ups, Thomas J, Carey and Donald R. Schmitt, The Career Press, Inc., 12 Parish Drive, Wayne, New Jersey 07470, www.careerpress.com, 2016, 255 pages, $16.99)

Conventionally downed balloons were discovered and often recovered on Mack Brazel’s tour on the ranch he worked, such as the Mogul balloon train found on June 14, 1947, described as “rubber strips, tin foil, a rather tough paper and sticks.” What foreman W.W Mack Brazel discovered on J.B. Foster’s ranch on July 3, 1947 was “quite different.” 

The military arrived in short-order and discovered remains of a crashed vehicle that also had dispersed debris for almost a mile from a mid-air explosion into a “fan-shaped” pattern.

Intelligence officer, Jesse Marcel, did a hasty “stop-off” at his home to show his wife and son the strange parts of debris. Following, also came a discovered object 40-miles to the North: the remains of a small ship with additional bodies.

All areas were cordoned off, road-blocks, and a severe security-blanket began to cover the Roswell area, all farms, all media, the Air Base was shut down for all purposes for one week, and a drastic and penetrating search for any and all artifacts of the crash that citizens may have taken.

The crash 40-miles north of Roswell needed more equipment, such as a flatbed, and it was declared a matter of clandestinely deep National Security. It included engineers and ambulance trucks. It was a strategic project.

Mechanical engineers examined some of the wreckage back at Hanger P-3, even pounded the material with a 16-pound sledge hammer with no effect.

scapegoat event was created at Fort Worth were, along with “neoprene rubber, wooden sticks, blank masking tape, string, and one-sided reflective foil,” while the real material was sent to Ohio. “The FBI’s Dallas office confirmed that.” (p. 37) All tell-tale equipment had been ‘cleared out’ by dawn and the “weather balloon” headline had raced across the media.

The White House had become a war room connected with the Departments of the Army Air Force chief, the Secretary of War, the head of the Armed Forces Special Weapons Project, the Chair of the Joint Chiefs, as well as the President.

Mack Brazel began “retractions” of the incident on July 9th. The military was the easiest to censor as it was a dictatorship, but non-military citizens had Constitutional Rights. Fool-proof evidence as “hardware” had to also be “dealt with and no time to loose”: intimation of public citizens also began as the military conducted cover-up operations and collect the “near-indestructible, paper thin material that has perfect memory.”

THE DEBUNKING PROGRAM

The Army’s new policy was to dismiss all flying disk sightings or UFOs: a full-scale ‘scourged-earth policy’ ensued.

On September 23, 1947, Lieutenant General Nathan F. Twining signed a secret memorandum through the Pentagon to Brigadier General George Schulgen of the Air Intelligence requiring the Division to consider “the phenomenon was real.

Their investigative “web” (later called the Military-Industrial-Complex) included many sources such as Air Force T-2, Bureau of Standards, General Electric, Rand Corporation, Hughes Air Craft and the Battelle National Laboratories.

Since 1947, agents of governments were often monsters that hid in closets to guard truisms that they wanted to control. 

Witnesses Mac Brazel and Timothy “Dee” Proctor were also threatened that if they told what they saw that Dee Proctor would never see his family again. Personnel of radio station KGFL, Walt Whitmore, Jr., Jud Roberts, Frank Joyce likewise received threats that would eventually generate their silence.

Joseph Montoya, Lieutenant Governor of New Mexico, was called to Hanger P-3, and incidentally saw the “little bodies with big heads.” In a panic, Pete and Ruben Anaya came and got Montoya.  Because he could speak Spanish, Sheriff Wilcox delivered the “death threat” to Montoya. Wilcox never ran for the office of Sheriff again (p. 64).

Author Antony Bragalia interviewed the daughter of Hunter G. Penn who had taken “a deadly serious assignment back in the summer of 1947” to “help manage civilian-military affairs after the crash…(an) information black-out.” Penn told his foster daughter, Michelle Penn, that he was authorized to use physical force and weapons to obtain their silence. “He tried to ‘heart-attack’ people,” Michelle said.

Barbara Duggar, George and Inez Wilcox, Phyllis McGuire, all had been threatened for their direct observations or some knowledge of the 1947 crash.  

Frankie Dwyer Rowe was a 12-year-old daughter of a crew chief of the Roswell Fire Department and had witnessed Robert Scrogging unveiling a mysterious piece of foil that couldn’t be destroyed and “flowed like water.” When the military learned what she had witnessed they came to visit her with such people as Arthur Philbin of the 390th Air Service Squadron (ASS) threatening her: “If you say anything, not only will you be killed, but we will come back for your family. There’s big desert out there, no one will ever find you.”

Roswell Fire Station crewmen, Dan Dwyer and Lee Reeves, arrived earlier at a crash site to observe “an egg-shaped vessel of some sort,” small bodies and one still living.

The full-weight and consequence of the ‘family’ of UFO witnesses, both Dan Dwyer and Ken Letcher, had married into Roswell paranoia, especially when “telephone wire-tapping” was discovered in 1997 (pp. 91-95).

Captain Oliver W. “Pappy” Henderson and Dr. John Kromschroeder had knowledge of the transport of the fragments and bodies.  Not surprisingly, “someone from Washington” came to retrieve the material “Pappy” had and reminded him of his security oath.

Guarding his involvement with the crash and Hanger P-3, Provost Marshal at RAAF  Major Edwin Easley kept his promise to President Truman in 1947 that he would was “never to speak about the incident again.”

CRATES TO FORT WORTH

Major Edgar R. Skelly ordered a special crew a road a Silverplate B-29 Bomber Straight Flush to fly a crate containing alien bodies to Forth Worth on July 9, 1947. He headed a nine-man crew to escort a heavily-guarded crate loaded at Bomb Pit Number 1. They were told “to keep their mouths shut throughout their assignment.”  This Skelly did, despite researcher prodding, until his death in 2002.

Both, Jesse Marcel, Sr., his son Jesse Marcel, Jr., who witnessed the original crashed parts, were harassed by mysterious phone calls and threats until the day of their deaths. Senior Jesse Marcel believed he was under a death threat and had a meeting with a mysterious “Dick D’Amato” which certainly didn’t lesson that belief.  D’Amato said the truth was buried deep under Black budgets and witnesses that were heavily watched. 

The RAAF base hospital administrative executive secretary was a Miriam ‘Andrea’ Bush who allegedly had observed alien bodies on July 9, 1947. It was an event that deeply haunted her until her bizarre death in December 1989 in a Fremont, California motel.

One of the biggest threats to the military was the plights of “souvenir collectors” of the crash. Other nearly lost accounts of witnesses were in fear of coming forward. Sydney “Jack” Wright, Dan Richards, Trinidad Chavez, Ralph A. Multer, Charles Austin Wood, Frank Vega, James Wood, Sally Tadolini, Randy Lovelace, June Crain, Walter Haut, Tom Brookshier, were among these.

“To a journalist, it’s always about what happened and why,” said broadcast journalist Cheryll Jones. “This book underscores the bigger issue that the UFO/ET phenomenon is truly a significant part of a bigger picture of lies, deception, and deceit prevalent in our world today. People brave enough to challenge that are a vital part of the journalist’s quest for answers in trying to figure that out. This takes us a big step further in that direction.” (p. 21)

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Steve Erdmann, October, 2019

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David Icke

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https://wordpresscom507.wordpress.com/2020/06/07/stephen-erdmann-trust-and-foundatin/wordpresscom507 – Stephen Erdmann Foundation-Dissenter/Disinter Magazine

Investigative Reporting

The Many Worlds Undiscovered!

Posted on  by steveerdmann      Rate This
https://www.youtube.com/embed/llYyGCiLDYU?version=3&rel=1&showsearch=0&showinfo=1&iv_load_policy=1&fs=1&hl=en&autohide=2&wmode=transparent

Edited by Steve Erdmannhttps://www.youtube.com/embed/1w2dMekIJLw?version=3&rel=1&showsearch=0&showinfo=1&iv_load_policy=1&fs=1&hl=en&autohide=2&wmode=transparent

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David Icke: Secrets of the Matrix

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From the unbelievable to the undeniable: Epistemological pluralism, or how conspiracy theorists legitimate their extraordinary truth claims

Jaron HarambamStef AupersFirst Published December 17, 2019 Research Articlehttps://doi.org/10.1177/1367549419886045

Article information 
SAGE Choice
Open Access
Creative Commons Attribution, Non Commercial 4.0 License

Abstract

Despite their stigma, conspiracy theories are hugely popular today and have pervaded mainstream culture. Increasingly, such theories expanded into large master schemes of deceit where ‘everything is connected’. Moving beyond discussions of their truthfulness, we study in this article how such ‘super conspiracy theories’ are made plausible. We strategically selected the case study of David Icke – a true celebrity in conspiracy circles and main proponent of such all-encompassing narratives – to analyze his discursive strategies of legitimation: How does he support and validate his extraordinary claims? It is our argument that Icke succeeds by exploiting multiple sources of epistemic authority; he draws eclectically on ‘experience’, ‘tradition’, ‘futuristic imageries’, ‘science’ and ‘social theory’ to convince his audience. In a Western culture without any full monopoly on truth, and for a people wary of mainstream authorities, it proves opportune to draw on a wide variety of epistemic sources when claiming knowledge.Keywords Conspiracy theoriesDavid Ickeepistemic authorityepistemological pluralismNew Agepostmodernism

Introduction

Conspiracy theories about the ‘real truth’ behind the attacks of 9/11, the deaths of JFK or Bin Laden, or those about the ‘true reasons’ behind vaccination campaigns, are widespread in contemporary Western culture and feature in films like The Matrix, bestsellers like The Da Vinci Code or TV series like The X-Files, 24 or Homeland. While assessments of their current popularity are hard to substantiate, especially from a historical perspective, it is clear that conspiracy theories do not operate at the margins of society; they are a mainstream and hugely popular cultural phenomenon and receive much public attention today (Knight, 2000Melley, 2000).

In academia, however, conspiracy theories are often refuted as ungrounded and irrational speculation (Aupers, 2012Harambam, 2017). According to critical scholars, conspiracy theorists make ‘the characteristic paranoid leap into fantasy’ – particularly because they connect many unrelated facts and events (Hofstadter, 1996 [1966]: 11). They may base their theories on (some) factual claims but go ‘wrong by locating causal relationships where none exist’ (Pipes, 1997: 31) and hence ‘inhabit a different epistemic universe, where the usual rules for determining truth and falsity do not apply’ (Barkun, 2006: 187). Conspiracy theorists, then, construct explanatory narratives that our mainstream epistemic institutions and advocates (most notably science and scientists) regard as unwarranted (Byford, 2011Harambam and Aupers, 2015Keeley, 1999). Today, this ‘unlawful’ connecting of seemingly unrelated dots in a meta-narrative is a phenomenon writ large. Barkun (2006) speaks in this respect of the increasing popularity of ‘super conspiracies’ or ‘conspiratorial constructs in which multiple conspiracies are believed to be linked together hierarchically’ (p. 6). Knight (2000) identifies a similar development: ‘over the last decades conspiracy theories have shown signs of increasing complexity and inclusiveness, as once separate suspicions are welded into Grand Unified Theories of Everything’ (p. 204).

Moving beyond discussions of their truthfulness, we study from a cultural sociological perspective how these all-encompassing super conspiracy theories are made plausible. Drawing everything together is easy, making people believe what you say is more difficult. And yet millions of people around the world – and many in the Dutch conspiracy milieu – are attracted by them. One of the main and most popular propagators of such all-encompassing narratives of deceit is David Icke (Barkun, 2006: 103). He is most famous – or notorious – for his ‘reptilian thesis’: the idea that ‘reptilian human-alien hybrids are in covert control of the planet’ (Robertson, 2013: 28). But he is also known for his ‘synthesis’ of seemingly different or ‘antithetical’ thought: he brings together New Age teachings with apocalyptic conspiracy theories about a coming totalitarian New World Order (cf. Barkun, 2006Ward and Voas, 2011). As Lewis and Kahn (2005) rightfully note, ‘Icke’s greatest strength is his totalizing ambition to weave numerous sub-theories into an extraordinary narrative that is both all-inclusive and all-accounting’ (p. 8). More specifically, Robertson (2016) argues that this is the result of ‘an epistemology that acknowledges [different] sources of access to knowledge’ (p. 9). Alongside the common appeals to ‘science’ and ‘tradition’, Robertson (2016) argues, conspiracy theorists like David Icke draw on other less acknowledged ‘epistemic strategies’ as well: ‘appeals to experiential, channeled and synthetic knowledge’ (p. 10).

Robertson (2016) points here to an important aspect of the epistemic authority of conspiracy theorists: they can draw on ‘the full range of epistemic strategies’ (p. 25), while today’s dominant epistemic institutions only allow appeals to ‘science’ (Gieryn, 1999). Robertson (2016) provides a sophisticated and thorough analysis of the lives and works of several ‘millennial conspiracists’ (such as David Icke) and shows that they (strategically) draw on various epistemic strategies in order to gain authority in this cultural milieu. Basing ourselves on Icke’s 2011 ‘performance’ in Amsterdam, we take this lead further and systematically analyze in full empirical detail how David Icke actually draws on such a multitude of epistemic sources. We focus on his discursive strategies of legitimation and pose open research questions: How does he support and validate his extraordinary claims in order to achieve epistemic authority in the conspiracy milieu? What are the main epistemic strategies he deploys? And what proofs, tropes and metaphors underpin each of these analytically distinct epistemic strategies?

Claiming epistemic authority

Many different scholars – from Hofstadter (1996 [1966]: 29) to Knight (2000: 204) and Barkun (2006: 3) – claim that the adage ‘everything is connected’ is ‘one of the guiding principles in virtually every conspiracy theory’. While Knight (2000) makes a plea for the rationality of this adage in a world of global relations (pp. 204–241), the majority of scholars hold this ‘unifying quality’ of contemporary conspiracy theories to be their major epistemological flaw (e.g. Barkun, 2006Byford, 2011Hofstadter, 1996 [1966]Keeley, 1999Popper, 2013 [1945]). They argue that conspiracies may be ‘typical social phenomena’ (Popper, 2013 [1945]) 307), but ‘these need to be recognized as multiple, and in most instances unrelated events which cannot be reduced to a single, common denominator’ (Byford, 2011: 33, original emphasis). To ‘regard a “vast” or “gigantic” conspiracy as the motive force in historical events’ (Hofstadter, 1996 [1966]: 29) is therefore simply ludicrous: social life is inextricably more complex (Barkun, 2006: 7).

Yet such ‘grand unified theories of everything’ are immensely popular today. They are present in the ideas of people consuming conspiracy theories, they are visualized in colorful diagrams that are circulated on conspiracy websites and they form the thought of major conspiracy theorists, like David Icke. Connecting the dots between loose ends may, for such scholars, involve the notorious ‘big leap from the undeniable to the unbelievable’ (Hofstadter, 1996 [1966]: 38), but for many people in the conspiracy milieu, these connections are very plausible and real. What critical scholars of conspiracy theories seem to gloss over in their dedication to debunk conspiracy theories, then is the fact that these overarching theories need to be made plausible if such conspiracy theorists are to have any serious attention. People are not passive or gullible believers; they need to be actively convinced. Underlying conspiracy theorists’ efforts to connect the seemingly unrelated is a need for epistemic validation: they want their claims on truth to be believed, after all. But such ‘grand unified theories of everything’ are not your everyday news: the world as we know it is often turned upside down and inside out, connecting the most outlandish ideas to the very ordinary experiences of people. Indeed, it often is the ‘unbelievable’ that is sold here. The question is therefore how do conspiracy theorists convincingly do so?

To approach this issue, we need to move beyond the positivistic reflex to debunk conspiracy theories as unfounded and irrational (Barkun, 2006Byford, 2011Hofstadter, 1996 [1966]Keeley, 1999Popper, 2013 [1945]) and adopt a cultural sociological approach. From this perspective, there are multiple ways to support truth claims. Max Weber (2013 [1922]) already pointed out that one can claim authority through charisma, tradition or, in modern societies, particularly through rationalized procedures like science or law. In our Western world, referencing to ‘science’ – its institutions, experts, epistemologies and methods – is perhaps the most prevalent and powerful way to lend credibility to the claims one is making (Brown, 2009). ‘If “science” says so, we are more often than not inclined to believe it or act on it – and prefer it over claims lacking this epistemic seal of approval’ (Gieryn, 1999: 1). The tremendous epistemic authority ‘science’ enjoys today is, however, not uncontested: trust in ‘science’, particularly its institutions and experts, gradually declined over the last decades in most Western countries (cf. Beck, 1992Inglehart, 1997) and other forms of knowledge are on the rise. Examples are alternative and complementary medicine, all kinds of non-science-based nutritional regimes and New Age philosophies of life (cf. Campbell, 2007Hammer, 2004Heelas, 1996). Conspiracy culture is part of this cultural trend turning away from mainstream epistemic authorities. Not only do conspiracy theorists openly challenge the epistemic authority of science (Harambam and Aupers, 2015), but like David Icke himself, they often advance other ways of knowing as more authentic and authoritative (e.g. Robertson, 2016). Icke is therefore not just the archetype of the contemporary ‘super conspiracy theorist’ (cf. Barkun, 2006: 8; Knight, 2000: 204), but a typical exponent of the broader cultural movement discontented with mainstream epistemic institutions and their scientific-materialist worldview (e.g. Campbell, 2007Heelas, 1996Roszak, 1995). Now, how does Icke draw on multiple epistemic strategies to make his rather extravagant ideas seem plausible?

Method, data and analysis

The empirical material used for this analysis was collected on the day Icke held his show – ‘Human Race, Get Off Your Knees. The Lion Sleeps No More’ – in Amsterdam on 10 December 2011. This event was one of the many places the first author included in his ‘multi-sited ethnography’ (Falzon, 2009) of the Dutch ‘conspiracy milieu’ (Harambam, 2017). For a period of 20 months, between October 2011 and June 2013, extensive visits were made to their social gatherings – shows, political manifestations, conferences and movie screenings – and to their private homes. Besides the traditional ethnographic methods of participant observation and interviewing, the first author undertook content analyses of the media (videos, texts, cartoons, etc.) circulated at these places and on the Internet (their own websites, blogs, Facebook pages, etc.).

In this article, however, we will mostly draw on that particular performance of David Icke. Given the fact that Icke is exemplary of this new stream of conspiracy culture (Barkun, 2006Knight, 2000Robertson, 2013), the analysis of his performance is a strategic case study (cf. Flyvbjerg, 2006) to research in empirical detail how the extraordinary claims of super conspiracy theories are made plausible. The first author participated as one of the many attendees of Icke’s show and observed not only his performance but also his audience with whom he spoke during that day and invited for further conversation elsewhere. He made field notes of Icke’s performance – its textual contents and his manifestations as an artist – and of the (reactions of the) public. Although these field notes were – as ‘thick descriptions’ (Geertz, 1973) – valuable for the research at large, they lacked the precision needed to adequately substantiate our claims in this article. We hence complemented the field notes with an analysis of professional video recordings of the same show at two different places, respectively, in London’s Wembley Arena show on 27 October 2012 and London’s Brixton Academy in May 2010. The videos are for sale on his website, but also feature on YouTube for free. We have therefore chosen to use these video recordings as the source for the precise quotations used in this article. The first author has re-examined this show a few times with a theoretical focus on the rhetorical and epistemological strategies used by Icke to legitimate his truth claims. The analysis is therefore more textual than ethnographic. Each successive time different themes were fine-tuned to inductively arrive at a typology (cf. Glaser and Strauss, 1967). All excerpts are from the YouTube film1 and are easily accessed. We have consistently marked each quote by its time location on the video.

‘The Day That Will Change Your Life’: David Icke in Amsterdam

David Icke is a true conspiracy celebrity; he holds performances in large venues all over the world, attracting crowds of thousands.2 He is also a writer of more than 20 books, which are read in 12 different languages, and he owns a popular website with many videos and interviews, and a rather active discussion platform (more than 100,000 registered users).3 David Icke manages to bring together a diverse range of people (Barkun, 2006Ward and Voas, 2011). As Lewis and Kahn (2005) argue, ‘Icke appeals equally to bohemian hipsters and right-wing reactionary fanatics [who] are just as likely to be sitting next to a 60-something UFO buff, a Nuwaubian, a Posadist, a Raëlian, or New Age earth goddess’ (p. 3). His fan base is quite diverse: from new religious movements to political anarchists and from alternative healers to anti-government militants on the extreme right. All of them, however, share a discontent with our current societal order, and more precisely with the way our epistemic institutions (i.e. science, politics, religion, media, etc.) work.

This counts for his 2011 Amsterdam performance in the auditorium of the RAI convention center as well. David Icke has attracted a 1500 plus crowd who have paid for a €69 ticket to see him speak today. It is a full day’s program: from 10:00 in the morning until 7:00 in the evening, David Icke will ‘put all the puzzles pieces together’ (13.30). The show opens when we see on the huge video screen on stage a chain of connected iron links passing while we hear a gloomy and grim music increasing in intensity. The links are chained around the earth and have texts on them: ‘New World Order’, ‘Rothschild Zionism’, ‘Child Abuse’, ‘Babylonian Brotherhood’, ‘Bilderbergers’, ‘Aspartame’, ‘Religion’, ‘Club of Rome’, ‘Chemtrails’, ‘Fluoride’, ‘HAARP’, ‘Satanism’, ‘Trilateral Commission’, ‘Mainstream Media’, ‘Fabian Society’, ‘Intelligence agencies’, ‘IMF’, ‘World Army’, ‘Police State’, ‘Global Politics’, ‘Big Pharma’, ‘War on Terror’, ‘Vaccines’, ‘Tavistock’, ‘Military/Industrial Complex’, ‘War on Drugs’, ‘Mind Control’. They make up one large interconnecting chain. And as the music turns more and more ominous, we see a lion – with the image of the earth projected on its skin – bound in chains. The music reaches its dramatic climax as the lion breaks out of his bondage and while he growls loudly, we see the links flying over the screen. The message is clear: the lion sleeps no more, the world liberates itself. And the audience is ready to receive David Icke with an overwhelming applause: the conspiracy rock star is finally here.

In the next 9 hours, David Icke elaborates passionately about ‘the multi-levelled conspiracy to enslave humanity in a global concentration camp’ (15:30). In general, Icke distinguishes between ‘the five-sense level of this conspiracy’ and those levels that transcend the here and now. The former is mostly about the corruption and dogmatism of our modern institutions – media, science, politics, religion and so on – and how they manipulate us and ‘program our minds’ into acquiescence (19:00–25:00). Icke integrates all these institutions in one pyramid. At the top of this pyramid, we find a network of secret societies and powerful families, sometimes captured under the header of the ‘Illuminati bloodlines’ and at other times called ‘Rothschild Zionists’. But, as Icke explains, ‘there is this other-dimensional, non-human, level to look at’ (1:41:00). We now get to the ‘reptilian thesis’ through which Icke gained his fame and notoriety (Barkun, 2006: 105). Icke explains that his super conspiracy theory ‘involves non-human entities that take a reptilian form [which] manipulate this reality through interbreeding bloodlines’ (1:44:00). These are the Illuminati-hybrid family networks that rule the world. However normal they may look to us – Barack Obama, Hillary Clinton, Queen Elizabeth – they are in fact ‘shapeshifting’ reptilians ‘hiding behind human form’ (2:07:00). Icke sketches a pristine image of a forgotten past when people still lived in harmony with the natural world and were connected to higher levels of consciousness, but argues that ‘the road to tyranny began when these reptilians arrived here’ (2:23:00). Part of ‘this reptilian intervention’ was to change our DNA so that we can no longer access the world beyond our five senses: ‘they want to lock humanity in that prison’ (3:27:30).

And that, Icke concludes, is ‘the bottom line of this conspiracy: controlling our perception of what is real’ (3:18:00). Our institutions – media, science, politics, religion – play an important part in making these ‘prisons for our minds’ (19:00–25:00), but Icke points to another method of mind control: ‘the moon-matrix’. He argues that the moon is actually a hollowed-out planetoid brought here by these reptilian entities that emits a frequency that distorts our interpretation of reality (2:30:00–3:08:00). However, change is coming, Icke ends optimistically: ‘a new epoch of enlightenment and expansion, of love, harmony and respect is moving into human experience’ (5:12:00). But ‘to go down this road of freedom, we first need to free our minds from the programming of a lifetime’ (22:00); we need ‘to remove the barriers of belief and perception that keep us from enlightenment’ (5:27:00). ‘Enough!’, Icke shouts loudly while he ends the show, ‘it is time to fly! It is time to fly . . .’ (6:42:00). And given the massive applause Icke receives, his audience seems ready for it.

David Icke brings together different conspiracy theories into one dazzling, yet cohesive narrative which captures his audience for hours. In the following section, we will show on which sources of epistemic authority he draws to make his conspiracy theory of everything plausible.

‘Just Following the Clues’: appealing to experience

One of the ways Icke lends legitimacy to his super conspiracy is by reference to his own personal experience, or life course. Virtually, the first thing he does when opening his show is giving a snapshot of ‘the chain of events that had led to now’ (6:30). He explains,

when I look back, I can see very clearly in my life, what happens to all of us, you go through a series of experiences and they seem to be random, they don’t seem to be connected. But when you look back, you see it’s a journey of connected synchronistic experiences that are leading us in a certain direction. (06:00)

Like the opening scene of the chained lion, David Icke makes it clear that ‘everything is connected’ on a personal level as well. He tells us how he was a professional soccer player having to deal with rheumatoid arthritis, how he went into television: ‘what that did was show me the inside of media: shite’, and that he got into (green party) politics: ‘and I saw politics from the inside: how it’s just a game’ (08:00). When he claims that the global elites are actually shapeshifting reptilians, he supports that with his own experience of meeting former UK Prime Minister Ted Heath in television studio years ago. And ‘as I looked into his eyes it was like looking into two black holes, it was like looking through him into this other dimension where he is really controlled from’ (2:06:30). Icke supports his personal experiences with those of others, friends, family or just people he has met: ‘so I met this lady in Canada some years ago, a very power-dressing business women, [who] had this experience and she was shaking when she told me the story’ (3:05:00). Basically, she told Icke how she had a boyfriend who one night while having sex turned ‘totally reptilian and then morphed back to human. And these bizarre stories, have been told by people from all over the world, people from all walks of life’ (3:07:00).

But there is another, more supernatural, type of experience on which Icke draws. He explains how his life changed dramatically after seeing a psychic to have hands on healing for his arthritis. She channels him visions of how he ‘was going out on a world stage to reveal great secrets, that there was a shadow over the world to be lifted, there was a story that had to be told’ (09:30). And although ‘this sounded like complete bloody craziness’ to Icke, his ‘life started to change’ after going to a mountain in Peru where he had ‘extraordinary experiences’ (10:00). This changed everything:

suddenly concepts, information, perceptions, were pouring into my mind. I was seeing the world in a different way, and I was asking the big questions: who are we? where are we? and why is the world as it is? And from that time the puzzle pieces started to be handed to me in amazingly synchronistic ways. (12.00)

Like a true prophet, Icke receives the wisdom he wrote down in his books from the gods above or from a metaphysical master plan: ‘the path is already mapped out, you only have to follow the clues’ (12:30). And that is what Icke has done: ‘all the information was coming to me in incredible synchronicity, of meeting people, seeing documents, coming across information, having experiences. [. . .] just following the clues, I came across this reptilian connection to the families that are running our reality’ (17:00). This Jungian concept of synchronicity or ‘meaningful coincidences’ is prevalent in Icke’s explanations of how he has gained his spiritual wisdom during his life course. By actively ‘putting the puzzle pieces together’ (13.30) or ‘connecting the dots’ (15:00) between seemingly unrelated experiences, he accumulated knowledge about the real reality underneath the surface of everyday life.

Such ‘revelatory experiences in which spokespersons claim to have gained privileged insight into those spiritual truths they present in their texts’ (Hammer, 2004: 369) have been an important source of epistemic authority in various historical religious traditions, but are also used by contemporary ‘prophets’ in today’s market of New Age spiritualities (Heelas, 1996). Icke blends mundane and supernatural experiences together and actively synthesizes that into a larger narrative which obtains a deeper meaning. Whereas Robertson (2016) differentiates ‘channeling’ from the epistemic strategy of ‘experience’, we argue, as we have shown here, that they are intimately connected (pp. 49–53). Icke’s appeal to the epistemic authority of ‘experience’, then, resonates with a broader cultural trend in which the ‘inner’ self and personal experience is the most trustworthy source of knowledge (e.g. Aupers and Houtman, 2006Heelas, 1996Van Zoonen, 2012).

‘All Across the Ancient World’: appealing to tradition

Another important part of David Icke’s argumentation is based on the (allegedly) perennial wisdom of ancient cultures. Icke supports his claims throughout his show by referring to the myths of African tribes, the sagas of Asian emperors, the dreams of Native-American shamans and the more familiar Abrahamic narratives. The best example is Icke’s reptilian thesis. He starts by showing an excerpt from the Old Testament (Genesis, 6:4) but argues that ‘that’s just the biblical version, all across the ancient world you see similar stories and accounts of this interbreeding’ (1:48:30). The most prominent symbolization of this reptilian interbreeding is visible, Icke argues, in the worship of ‘the serpent gods’ which happens all across the world, in all cultures, and in all religions. He starts off by saying that ‘the oldest form of religious worship in the world has been taken back 70.000 years, to an area of the Kalahari desert in South Africa and it is the worship of the serpent or worship of the snake’ (2:07:30). He gives many more examples: ‘Chinese emperors used to claim the right to be emperor because of their genetic connection to the serpent gods. And this is a theme all across the world between the serpent gods and royalty’ (1:58:00). He continues with myths of the old Mesopotamia, the Egyptians (‘who have their pharaohs represented as an cobra’), in Japan and Asia (‘the dragon is the most dominant symbol of that world’), in central and south America (‘the Mayan “Kukulkan” and “Quetzalcoatl” of the Aztecs’), the old druids, ‘folklore is full of serpents, and the Zulu Chitauri’ – their mythical ‘children of the serpent’ (2:07:00–2:10:00). But symbols of the serpent gods are also prominent in contemporary life, Icke tells us: in our myths, fairytales, the emblems of the aristocracy, the logos of car companies: ‘it’s amazing how many times you see the symbols of reptiles and humans, or part human, part reptile, overseeing the palaces, castles and churches of this elite’ (2:17:00). His conclusion is clear: ‘all worship the serpent gods’ (2:10:00).

However, ‘something else goes parallel with the reptilian story’, Icke tells us:

Again not just in the bible with the Garden of Eden, but all across the ancient accounts is the reptilian connection and the Fall of Men. And this is universal. The ancient accounts all talk about a time when humans were so unbelievably different to how we are today. (1:48:30)

He starts off by saying that ‘the energetic schism’ was

of course symbolized by Noah and the great flood. And Noah is simply a biblical version of much older stories that tell exactly the same story of how the earth turned over, how there were great geological catastrophes and how humans lost their power of the connection they had to higher levels of consciousness. (2:24:30)

In his legitimation of the Fall of Men through reptilians, Icke jumps from religious books, to popular myth, to fiction. As to the latter, he quotes large pieces of the book of Carlos Castaneda – a famous, but fictitious anthropological study – which supports virtually his whole thesis of how ‘predators from the depths of the cosmos took over the rule of our lives’ (3:10:00).

Throughout his show, then, Icke appeals to the knowledge and wisdom of the ‘ancient world’ to support and validate his own theories: if ‘they’ have been saying it for thousands of years, it must be true. In a (counter)culture wary of modern institutions and the knowledge they produce, this makes good sense: these old traditions represent after all a more authentic and pure base of wisdom than the cold rationality of modern science (Heelas, 1996Roszak, 1995). Icke’s appeal to the ancient cultures is what Hammer (2004) identifies as the epistemological strategy of ‘tradition’: basing one’s truth claims in the source of non-European (spiritual) lore. Such appeals are by no means references to ‘actual’ practices, customs and beliefs of ‘ancient cultures’, but construct a radically ‘modern’ reinterpretation of non-European tales and traditions (Hammer, 2004: 23). Icke similarly takes such (fictional) legends then as (containing) factual truths. Whether these are ‘really’ true or not may be less relevant for him and his audience: such ancient cultures simply ‘possessed a vast wisdom, a spirituality lost to us’ (Hammer, 2004: 136). David Icke conveniently draws on this more widely felt sentiment of modern cultural discontent and his appeal to ‘tradition’ falls on fertile ground in the conspiracy milieu.

‘Living in the Cosmic Internet’: appealing to futuristic imageries

In contrast to supporting one’s claims by appealing the wisdom of our ‘ancient cultures’, Icke also looks to the ‘future’ as a source of authority when he invokes the imageries brought to life by science fiction and digital technologies. To begin with the latter, Icke speaks, for example, about our bodies as computers: ‘our DNA is like a universal software code’, ‘just like computers, we have a phenomenal anti-virus system we call the human immune system’, and ‘what we call cultures are different sub-softwares of the human software’ (1:10:00–1:12:30). These analogies should all add plausibility to Icke’s argument that our bodies decode a universal energy field (the metaphysical universe) and herewith bring the reality we experience every day into being. Icke: ‘it is just like the wireless internet, where you get a computer and pull the whole world wide web, a whole collection of reality, out of the unseen, to appear on a screen, anywhere in the world’ (36:30). And there are more of such references to digital technologies that should support his ideas. For example, when Icke explains why our reality feels and appears ‘real’, it is ‘because we are living in a virtual reality universe. A fantastically advanced version of a gigantic computer game’ (32:30). Or he points to the new digital technologies that have made moving three-dimensional (3D) holographs possible, like news readers in a television show or Michael Jackson appearing on stage long after his death: ‘some of these digital holograms look so solid’, Icke explains, that ‘people are afraid to walk through them. And that’s what this is, digital holograms is the reality we’re experiencing’ (1:24:30). These examples of the ‘realness’ of virtual realities are deployed by Icke to convince us of his understanding that ‘we live in a very advanced equivalent of the holographic internet, we live in the cosmic internet’ (40:30).

The futuristic imageries developed in science fiction provide another source for Icke to tap into when supporting his super conspiracy theory. He particularly refers to The Matrix throughout his show (e.g. 42:00/47:00/2:59:00). The main idea put forward in that movie – that we all live, without really knowing it, in an artificial non-existent simulated world – resonates quite well with Icke’s worldview. It is a powerful metaphor to convince his audience. When he speaks about how reality is an illusion created inside our heads, he brings us to ‘this scene from The Matrix – which is absolutely right – where the Neo character says, “but this isn’t real!” And Morpheus says ‘well, what is real? How do you define real? If you’re talking about what you can feel, what you can smell, taste and see, then “real” is simply electronic signals interpreted by your brain’. That’s all it is’, Icke affirms. But the appeal to science fiction goes further than The Matrix. Icke supports, for example, his claim that the moon is an alien instrument of mind control by referencing to Star Wars – ‘in a galaxy far far away. . . I don’t think so. This is much closer at home’ (2:48:00) – and John Carpenter’s They Live – ‘I thought it was symbolically accurate when I first saw it, but now I know it’s unbelievably accurate’ (3:02:00). Whereas the former movie features the Death Star ‘in the same bloody way as I am talking about the moon’ (2:49:00), the latter boasts a TV tower transmitting a frequency – like the moon-matrix – ‘which is preventing the population from seeing what they would normally see [the truth]’ (3:05:00). Both movies confirm what Icke is saying all along.

What was science fiction yesterday is often science faction today. And vice versa, newly introduced technologies feed the social imagination about its ‘magical possibilities’. The introduction of the telegraph in the 19th century, for instance, motivated the public discourse on ‘spirit communication’ and supported the plausibility and popularity of Spiritism (Stolov, 2008). In his performance, Icke plays with this social imagination about digital technologies to convince the audience. He argues, ‘so much of science fiction ain’t fiction at all, they’re getting it from facts’ (2:51:00) and, consequentially, that much more ‘unbelievable’ stuff has potential reality. Barkun (2006) states that this ‘fact-fiction reversal’ is common: ‘conspiracy literature is replete with instances in which fictional products are asserted to be accurate factual representations of reality’ (p. 29). In a society where people are exposed to technologically real, yet virtual ‘miracles’ on a daily basis – from games to virtual reality (VR) and artificial intelligence (AI) – Icke’s outlandish notion of the cosmic Internet gains in plausibility.

‘What Scientists Are Saying’: appealing to science

In a time and place dominated by the scientific worldview like ours, anyone trying to legitimize their claims on reality would do well to base it in ‘science’ (cf. Gieryn, 1999). It is therefore no surprise that David Icke does abundantly so. The first time Icke alludes to ‘science’ is by using it as ‘building blocks’ of his own theories. When he is arguing, for example, that the moon is actually a hollowed-out planetoid from outer space, he quotes many different scientists to support his claim. He begins with scientists who question the common understandings of the moon as our earth’s satellite: ‘Isaac Asimov, a Russian professor of Biochemistry’ and ‘Irwin Shapiro from the Harvard-Smithsonian Center for Astrophysics’ both argue that given its size and position, the moon cannot be there (2:36:00). He continues with scientists from NASA who concluded after seismic experiments that ‘the moon is more like a hollow than a homogenous sphere’ (2:36:30) – findings that were supported by ‘Dr. Frank Press and Dr. Sean Solomon from MIT’ (2:37:00). To argue that the moon is a construct from outer space, Icke extensively quotes ‘two scientists from the Russian Academy of Science’ – Michael Vahsin and Alexander Shcherbakov – who ‘wrote an article in Sputnik Magazine titled: “Is the moon the creation of alien intelligence?”’ (2:38:00). After presenting their findings, Icke advances their marvelous conclusion:

they say it’s a hollowed out planetoid! ‘What we have here is a very ancient spaceship, the interior of which was filled with [. . .] everything necessary to enable this caravel of the universe to serve as Noah’s ark of intelligence’. (2:40:00)

Icke’s efforts here should give his audience the impression that his theory of the moon as a hollowed-out planetoid is not just something he is imagining, it is actually supported by real scientists.

But David Icke also alludes to ‘science’ as ‘stepping stones’ to reach his own more extravagant ideas. He starts in such cases from a position of scientific quandary and then advances his own rather extraordinary thoughts where science leaves matters unexplained. For example, when Icke explains that our ‘body-computer’ can no longer reach higher levels of consciousness, he turns to unresolved matters in astronomy and goes from there:

the range of frequencies our body-computer can decode is extraordinarily tiny. We are virtually blind, in terms of [seeing] what exist. The vast majority of this universe is what scientists call dark energy or dark matter and they call it dark not because it’s pitch black, but because we cannot decode it. Therefore it’s not within our realm of experience. We have to work it out by its impact on things we can see. (59:00)

In such cases, ‘science’ is the base camp from which Icke ventures into the unexplored territories ‘science’ dares not to enter. They may point in the right direction, Icke says, but because ‘they’re focusing on their own discipline, their own individual dots, and they don’t connect the dots, they can’t see the picture!’ (1:26:00).

Icke finally draws on ‘science’ for its rich repertoire of cultural imageries to make his thoughts clear and intelligible. So when he is talking about how ‘ethereal reptilian entities’ are actually controlling people like Obama and Queen Elisabeth, Icke turns to the image of the sterile laboratory:

and this is a good analogy, you know, when these scientists in a laboratory are working with something they can’t touch because it’s too dangerous. What they are working with will be in a tank, and they’ll put gloves on, which allows them to be outside the tank, but to manipulate inside the tank. Well, that is a very good symbol of what I am talking about, these illuminati bloodlines, these hybrid bloodlines operate like with those gloves, operating inside this reality. (1:56:00)

Or somewhat later in his show when Icke is talking about how the ‘control system’ has trained us into acquiescence and obedience, he puts forward the image of a classical conditioning experiment:

it is a mind game. More and more fine details of our life are being dictated. It is to turn us into a version of this [we see picture of a mouse in the middle of a maze]. When you put shock equipment down different channels [the mouse learns where not to go]. And what they are doing is [the same]: giving us punishments for doing this, punishments for doing that, so we become subservient to the system, never challenge it. (5:00:00)

‘Science’, to conclude, is an important part of our cultural imaginary, and Icke draws effortlessly from it to make his ideas intelligible.

Despite the critique on the institution of science, appeals to its epistemic authority remain highly effective to lend credibility to knowledge (e.g. Gieryn, 1999). Even ‘spokespersons for religious outlooks’ need to position themselves in one way or another to the dominant scientific worldview (Hammer, 2004: 202). Icke taps extensively on ‘science’ to legitimize his claims. On one hand, it functions as his positive Other when he argues that ‘scientists are saying the same’. But ‘science’ also functions in Icke’s thought as its negative Other – when it is the signpost of limitation (as in its inability to provide answers to the mysteries of black holes, dark matter and junk DNA), ‘look, I dare to go further’. Just like religious spokespersons in the esoteric tradition (Hammer, 2004: 201–206; Robertson, 2016: 48–49), Icke uses the authority of ‘science’ pragmatically in the legitimization of his ideas.

‘The Incessant Centralization of Power’: appealing to (critical) social theory

When Icke comes back from exploring the multidimensional level of his super conspiracy to explain ‘how it all plays out in this five sense reality’ (3:27:00); he mostly draws on notions developed in the social sciences. His main question ‘how do a few control the many?’ is unequivocally answered in sociological terms: by ‘the way they have structured society’ (3:27:30).

This allusion to social theory is particularly clear when Icke explains that ‘when you are the few and you have to control the many, you have to centralize decision-making’ (3:36:00). He sketches a pyramidal view of society with the centralization of power/knowledge as its organizing principle:

the idea is to hold advanced knowledge in the upper levels of this structure, where a few at the top are the only ones who know how it all fits together, and they keep the general population in ignorance of what they know, therefore they have the power to manipulate the masses. (3:28:00)

Knowledge is power, Icke explains after Foucault. Very much akin to sociological understandings of modern societies, Icke’s ‘pyramid of manipulation’ is also hierarchically structured along ‘the major institutions that affect our daily life’: religion, finance, military, education, politics and so on (see Figure 1). Through this pyramidal view of society, he underscores the rationality of functionally differentiating society in order to most efficiently control it – thoughts reminiscent of Weber’s (2013 [1922]) bureaucratization theories. Especially, by emphasizing how such systems operate through hierarchical structures, where lower level ‘officials’ just ‘do their job’ and ‘follow the rules’ (cf. Arendt, 2006 [1963]), Icke argues how society can be manipulated with the cooperation of those being manipulated:

they [just] go to work, earn money, go on holiday, they don’t try to manipulate anybody, they don’t try to create a Fascist Orwellian totalitarian. But they don’t know how their apparently innocent contribution individually connects with other apparently innocent contributions around the system. And that’s how they keep what’s going on in the hands of the few. (3:30:00)

Figure 1. David Icke’s pyramid of manipulation.

There is a clear legacy of Marxian thought here that is apparent when compared to ‘The Pyramid of the Capitalist System’ (Figure 2) – a satiric cartoon image published in a 1911 edition of Industrial Worker. Although the dominant institutions may have somewhat changed, the message is similar:

humans have been put in this circular lifestyle, just a repeating cycle of work, eat, sleep and work, eat, sleep . . . so that we spend so much time surviving and not lift our head up to see what’s going on. (3:35:30)

Figure 2. Pyramid of capitalist system.

Meanwhile, the ruling classes enjoy their privileges, while the major institutions guarantee order and stability. Even the operating logic is similar: just ‘follow the money’ and you will get to the cabal. The affinity with Marxian thought, however, goes further. Icke speaks about how these institutions ‘program us with a certain perception of reality which we carry through our lives so we will be good little slaves’ (22:30). Not a far cry from how the ‘superstructure of society’ maintains and legitimizes the dominant ‘relations of production’ by advancing them as normal, just and legitimate (Marx and Engels, 1965 [1865]). Ultimately, Icke reiterates Gramscian notions of how these institutions – and especially the education system – socialize people to obediently serve in their designated (labor)roles in society: ‘which is why the education system is not about educating, it’s about programming’ (3:28:00). These acquired ‘hegemonic beliefs’, Gramsci argues, thwart critical thought and ultimately obstruct ‘revolution’ (e.g. 2011). For the same reasons, Icke urges us to ‘free our minds’ because the ‘control system has been set up in endless ways to divert us, to confuse us and to keep us from the understanding that would set us free’ (14:00). But there is a way out, Icke tells us in rather Marxist terms, ‘the choice is to become conscious!’ (25:00). Class conscious?

When Icke speaks about the centralization of power, he also provides a form of historical sociology. He explains how we

started with tribal situations as part of this centralization process. The tribes came together in what we call nations, nations under unions, like the European Union. And the next stage of that, which they are already preparing for, is to take us into a world government. (3:37:00)

This notion of a coming totalitarian world government, or New World Order, is central to many conspiracy theories (e.g. Barkun, 2006Byford, 2011). What is crucial here, however, is that Icke gives a socio-historical explanation of how we got into the ‘centralized dictatorship the EU is now’ (3:43:00). So when Icke refers to ‘globalization’ as part of the strategy of the cabal, his explanation mimics those sociological theories standing in the tradition of Wallerstein’s ‘World-Systems Analysis’:

globalization is the constant centralization of power, more and more power in the hands of a few, more and more, the globalized economy is making every country dependent on every other country, therefore has no power of individual action and decision making [. . .] and the reason they want to do this is because dependency equals control. (3:45:30)

In contrast to the appeals to ‘science’ where Icke literally quotes natural scientists, the reference to social scientific knowledge is less explicit. But the way Icke explains our current situation and how we got there shows an elective affinity with sociological analysis, especially of the critical or (neo)Marxist signature. In doing so, Icke unmistakably draws authority from explanations that originate in the social sciences, but are now widespread. His talk testifies to the trickling down of (social) scientific notions in wider society (Giddens, 1984). Critical social theory has become a popular idiom for conspiracy theorists to express their discontent with our current societal order.

Conclusion

David Icke brings the heavens and the earths together in one master narrative of institutional mind control, multidimensional universes and shapeshifting reptilian races. This is his objective because ‘when you connect the dots, suddenly the light goes on and the picture forms’ (15:00). We have shown in this article how Icke draws on a multitude of sources of epistemic authority to convince his audience that the ‘unbelievable’ is indeed ‘undeniable’. His claims to truth are a hodgepodge of epistemological strategies: he draws on personal experience, perennial narratives in ancient cultures, technological imageries, science and critical social theory to support his super conspiracy theory. (Academic) criticasters of conspiracy theorists may find this eclecticism problematic: they deplore how such ‘charlatans’ unsettle the boundaries between fact and fiction and warn for the societal ramifications of such relativism (e.g. Barkun, 2006Pipes, 1997Sunstein and Vermeule, 2009). But debunking these conspiracy theories as irrational and problematic does not help us in understanding its massive appeal and plausibility from a cultural perspective. Based on our analysis, we argue in line with Robertson (2016) that Icke’s epistemological pluralism adds plausibility to his super conspiracy theory. Moving beyond a strict religious studies perspective, however, our analysis identified two more distinct epistemic strategies: ‘futuristic imageries’ and ‘(critical) social theory’. Alluding to technological advances and science fiction helps people imagine the ‘unbelievable’, while referring to the societal critiques of academics gives credence to their societal discontents. These are important contemporary additions to Hammer’s (2004) tri-partite schema of drawing on ‘tradition’, ‘science’ and ‘experience’ when claiming knowledge outside the orthodox mainstream. In short, Icke is able to convince his audience of his super conspiracy theory and acquire epistemic authority in the conspiracy milieu precisely because he is able to deploy a very diverse range of epistemic strategies, from the spiritual to the (social) scientific and from the visceral to the cerebral. We will develop two sociological explanations as to why this is the case – hypotheses about the cultural reception of super conspiracy theories that suggest new routes for further research. First of all, in contemporary Western culture, no belief system has a full monopoly on truth – particularly since the erosion of Christian tradition, doctrine and beliefs are not necessarily and fully replaced by the epistemic authority of modern science (Beck, 1992Brown, 2009Inglehart, 1997). For people wary of mainstream institutions and their truth claims, it proves opportune to draw on a wide variety of epistemic sources when claiming knowledge. Motivated by a generalized distrust, they assemble different perspectives on truth and ‘pick-and-mix’ from both established and ‘stigmatized knowledge’ (cf. Barkun, 2006: 26; Campbell, 2007Lyon, 2000Possamai, 2005). However, Icke’s eclecticism may not only serve the epistemological omnivores, his super conspiracy theory may also appeal to distinctly different social groups, coming from different subcultures and lifestyles. Scholars have pointed to the fact that he manages to bring together a diverse range of people, from leftist spiritual seekers to right-wing reactionaries (Barkun, 2006Lewis and Kahn, 2005Ward and Voas, 2011), and our own observations and interviews in the field corroborate that (Harambam and Aupers, 2017). Our second suggestion, then, is that Icke’s reliance on multiple epistemic sources of authority attracts distinctly different audiences: both those attracted to New Age spiritualities, and amateur-scientists, social activists, hackers and fans of the science fiction genre. His text is highly ‘polysemic’: each follower can ‘decode’ Icke’s super conspiracy theory differently and in conformity with one’s own social identity and political interests.

Whether Icke’s theories address the epistemological omnivores – individuals combining experience, (social)science and ancient myth to ‘find the truth’ – or different social groups with distinct epistemological preferences (or both) need to be further researched. In addition, a venue for further research is the communal dimension of conspiracy culture (Ibid.). Icke’s show, after all, is a form of counter-cultural entertainment, and there are many facets of collective effervescence at work during his performances (Durkheim, 1965 [1912]). For now we conclude that Icke’s fusion of science and religion, fact and value, folklore and futurism is reminiscent of what many scholars identify as postmodern culture (cf. Best and Kellner, 1997Jameson, 1991). The dissolution of stable categories of knowledge, the ‘bricolage’ and ‘pastiche’ of many different cultural forms and the individualistic possibilities for interpretation are features that have found their way from the arts and intelligentsia to everyday life of ordinary citizens, like those attending Icke’s show. Postmodernism may be dead in academia; it is alive and kicking in the outside world.

Authors’ note
Jaron Harambam is now affiliated with KU Leuven, Belgium.

Funding
The author(s) disclosed receipt of the following financial support for the research, authorship and/or publication of this article: This article is based on research funded by the Netherlands Organisation for Scientific Research (NWO) and is part of the project ‘Conspiracy Culture in the Netherlands: Modernity and Its discontents’, file number 404-10-438.

ORCID iD
Stef Aupers  https://orcid.org/0000-0002-8286-7147

Notes

1.https://www.youtube.com/watch?v=O2vlegEBuO0, last retrieved on 27 February 2015.

2.This was one of the slogans David Icke promoted his show with, for example, http://www.purityevents.nl/david-icke-the-lion-sleeps-no-more, last retrieved on 15 February 2016.

3.http://www.davidicke.com, last retrieved on 7 May 2015.

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Biographical note

Jaron Harambam is an interdisciplinary trained sociologist working on news, disinformation and conspiracy theories in today’s agorithmically structured media ecosystem. He received his PhD in Sociology (highest distinction) from Erasmus University Rotterdam, held postdoctoral research positions at the Institute for Information Law (IViR) at the University of Amsterdam, and is now a Marie Sklodowska-Curie Individual Fellowship holder at the Institute for media Studies at Leuven University.

Stef Aupers is cultural sociologist and works as a professor media culture at the Institute for Media Studies at Leuven University. He published widely on the mediatization of religion, spirituality and conspiracy theories and, particularly, computer game culture.

**********

David Icke

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David Icke
Icke in 2013
BornDavid Vaughan Icke
29 April 1952 (age 69)
Leicester, England
OccupationConspiracy theorist,[1] former sports broadcaster and football player
MovementNew Age conspiracism
Association football careerPosition(s)GoalkeeperYouth career1967–1971Coventry CitySenior career*YearsTeamApps(Gls)1971–1973Hereford United[2]37(0)* Senior club appearances and goals counted for the domestic league only
Websitedavidicke.com

David Vaughan Icke (/ˈdeɪvɪd vɔːn aɪk/; born 29 April 1952) is an English conspiracy theorist and a former footballer and sports broadcaster.[1][3][4][5][6] He has written over 20 books, self-published since the mid-1990s, and spoken in more than 25 countries.[7][8][9]

In 1990, he visited a psychic who told him he was on Earth for a purpose and would receive messages from the spirit world.[10] This led him to state in 1991 he was a “Son of the Godhead”[6] and that the world would soon be devastated by tidal waves and earthquakes, predictions he repeated on the BBC show Wogan.[11][12] His appearance led to public ridicule.[13] Books Icke wrote over the next 11 years developed his world view of New Age conspiracism.[14] His endorsement of an antisemitic forgery, The Protocols of the Elders of Zion, in The Robots’ Rebellion (1994) and And the Truth Shall Set You Free (1995) led his publisher to stop handling his books, which were then self-published.[9]

Icke believes the universe to consist of “vibrational” energy and infinite dimensions sharing the same space.[15][16][17] He claims an inter-dimensional race of reptilian beings, the Archons or Anunnaki, have hijacked the Earth and a genetically modified human–Archon hybrid race of shape-shifting reptilians – the Babylonian BrotherhoodIlluminati or “elite” – manipulate events to keep humans in fear, so that the Archons can feed off the resulting “negative energy”.[15][18][19][20] He claims many public figures belong to the Babylonian Brotherhood and propel humanity towards a global fascist state or New World Order, a post-truth era ending freedom of speech.[14][15][21][22] He sees the only way to defeat such “Archontic” influence is for people to wake up to the truth and fill their hearts with love.[15] Critics have accused Icke of being antisemitic and a Holocaust denier with his theories of reptilians serving as a deliberate “code”.[23][24][25] Icke denies these claims.[26]

Contents

Early life, family and education

The middle son of three boys born seven years apart, Icke was born in Leicester General Hospital to Beric Vaughan Icke and Barbara J. Icke, née Cooke, who were married in Leicester in 1951. Beric Icke served in the Royal Air Force as a medical orderly during World War II,[27] and after the war became a clerk in the Gents clock factory. The family lived in a terraced house on Lead Street in the centre of Leicester,[28] an area that was demolished in the mid-1950s as part of the city’s slum clearance.[29] When David Icke was three, around 1955, they moved to the Goodwood estate, one of the council estates the post-war Labour government built. “To say we were skint,” he wrote in 1993, “is like saying it is a little chilly at the North Pole.”[28] He recalls having to hide under a window or chair when the councilman came for the rent; after knocking, the rent man would walk around the house peering through windows. His mother never explained that it was about the rent; she just told Icke to hide. He wrote in 2003 that he still gets a fright when someone knocks on the door.[30]

Icke attended Whitehall Infant School, and then Whitehall Junior School.[31][30]

Football

Icke has said he made no effort at school, but when he was nine he was chosen for the junior school’s third-year football team. He writes that this was the first time he had succeeded at anything, and he came to see football as his way out of poverty. He played in goal, which he wrote suited the loner in him and gave him a sense of living on the edge between hero and villain.[32]

After failing his 11-plus exam in 1963, he was sent to the city’s Crown Hills Secondary Modern (rather than the local grammar school), where he was given a trial for the Leicester Boys Under-14 team.[33] He left school at 15 after being talent-spotted by Coventry City, who signed him up in 1967 as their youth team’s goalkeeper. In 1968 he played in the Coventry City youth team that were runners up to Burnley in the F.A. Youth Cup. He also played for Oxford United‘s reserve team and Northampton Town, on loan from Coventry.[34]

Rheumatoid arthritis in his left knee, which spread to the right knee, ankles, elbows, wrists and hands, stopped him from making a career out of football. Despite stating that he was often in agony during training, Icke managed to play part-time for Hereford United, including in the first team when they were in the fourth, and later in the third, division of the English Football League.[35] But in 1973, at the age of 21, the pain in his joints became so severe that he was forced to retire.[36]

First marriage

Icke met his first wife, Linda Atherton, in May 1971 at a dance at the Chesford Grange Hotel near Leamington Spa, Warwickshire. Shortly after they met, Icke left home following one of a number of frequent arguments he had started having with his father. His father was upset that Icke’s arthritis was interfering with his football career. Icke moved into a bedsit and worked in a travel agency, travelling to Hereford twice a week in the evenings to play football.[37]

Icke and Atherton married on 30 September 1971, four months after they met.[38] Their daughter was born in March 1975, followed by one son in December 1981, and another in November 1992.[39] The couple divorced in 2001 but remained friends, and Atherton continued to work as Icke’s business manager.[40]

Journalism, sports broadcasting

The loss of Icke’s position with Hereford meant that he and his wife had to sell their home, and for several weeks they lived apart, each moving in with their parents. In 1973 Icke found a job as a reporter with the weekly Leicester Advertiser, through a contact who was a sports editor at the Daily Mail.[41] He moved on to the Leicester News Agency, did some work for BBC Radio Leicester as its football reporter,[42] then worked his way up through the Loughborough Monitor, the Leicester Mercury and BRMB Radio in Birmingham.[43]

In 1976, Icke worked for two months in Saudi Arabia, helping with the national football team. His position at the team was planned to be a longer term position, but Icke decided to stay in the UK after his first holiday back.[44] After his return to the UK, BRMB decided to give him his job back, after which he successfully applied to Midlands Today at the BBC’s Pebble Mill Studios in Birmingham, a job that included on-air appearances.[45] One of the earliest stories he covered there was the murder of Carl Bridgewater, the paperboy shot during a robbery in 1978.[46]

In 1981, Icke became a sports presenter for the BBC’s national programme Newsnight, which had begun the previous year. Two years later, on 17 January 1983, he appeared on the first edition of the BBC’s Breakfast Time, British television’s first national breakfast show, and presented the sports news there until 1985. In 1983 he co-hosted Grandstand, at the time the BBC’s flagship national sports programme.[47] He also published his first book that year, It’s a Tough Game, Son!, about how to break into football.[48]

Icke and his family moved in 1982 to Ryde on the Isle of Wight.[49] His relationship with Grandstand was short-lived. He wrote that a new editor arrived in 1983 who appeared not to like him, but he continued working for BBC Sport until 1990, often on bowls and snooker programmes, and at the 1988 Summer Olympics.[50] Icke was by then a household name, but has said that a career in television began to lose its appeal to him; he found television workers insecure, shallow and sometimes vicious.[51]

In August 1990, his contract with the BBC was terminated when he initially refused to pay the Community Charge (also known as the “poll tax”), a local tax Margaret Thatcher‘s government introduced that year. He ultimately paid it, but his announcement that he was willing to go to prison rather than pay prompted the BBC, by charter an impartial public-service broadcaster, to distance itself from him.[52][53]

Green Party, Betty Shine

Icke moved to Ryde on the Isle of Wight in 1982.

Icke began to flirt with alternative medicine and New Age philosophies in the 1980s in an effort to relieve his arthritis, and this encouraged his interest in Green politics. He joined the Green Party and became a national spokesperson within six months.[54] His second book, It Doesn’t Have To Be Like This, an outline of his views on the environment, was published in 1989.

Icke wrote that 1989 was a time of considerable personal despair, and it was during this period that he said he began to feel a presence around him.[55] He often describes how he felt it while alone in a hotel room in March 1990, and finally asked, “If there is anybody here, will you please contact me because you are driving me up the wall!” Days later, in a newsagent’s shop in Ryde, he felt a force pull his feet to the ground and heard a voice guide him toward some books. One of them was Mind to Mind (1989) by Betty Shine, a psychic healer in Brighton. He read the book, then wrote to her requesting a consultation about his arthritis.[56][57][54][58]

Icke visited Shine four times. During the third meeting, on 29 March 1990, Icke claims to have felt something like a spider’s web on his face, and Shine told him she had a message from Wang Ye Lee of the spirit world.[59][60] Icke had been sent to heal the earth, she said, and would become famous but would face opposition. The spirit world was going to pass ideas to him, which he would speak about to others. He would write five books in three years; in 20 years a new flying machine would allow us to go wherever we wanted and time would have no meaning; and there would be earthquakes in unusual places, because the inner earth was being destabilised by having oil taken from under the seabed.[57][61][56]

In February 1991, Icke visited a pre-Inca Sillustani burial ground near PunoPeru, where he felt drawn to a particular circle of waist-high stones. As he stood in the circle he had two thoughts: that people would be talking about this in 100 years, and that it would be over when it rained. His body shook as though plugged into an electrical socket, he wrote, and new ideas poured into him. Then it started raining and the experience ended. He described it as the kundalini (a term from Hindu yoga) activating his chakras, or energy centres, triggering a higher level of consciousness.[62][14]

Turquoise period

Icke’s turquoise period followed an experience by a burial site in Sillustani, Peru, in 1991.

There followed what Icke called his “turquoise period”. He had been channelling for some time, he wrote, and had received a message through automatic writing that he was a “Son of the Godhead”, interpreting “Godhead” as the “Infinite Mind”.[63] He began to wear only turquoise, often a turquoise shell suit, a colour he saw as a conduit for positive energy.[64][65] He also started working on his third book, and the first of his New-Age period, The Truth Vibrations.

In August 1990, before his visit to Peru, Icke met Deborah Shaw, an English psychic based in Calgary in Alberta, Canada. When he returned from Peru they began a relationship, with the apparent blessing of Icke’s wife. In March 1991 Shaw began living with the couple, a short-lived arrangement that the press called the “turquoise triangle”. Shaw changed her name to Mari Shawsun, while Icke’s wife became Michaela, which she said was an aspect of the Archangel Michael.[66][67]

The relationship with Shaw led to the birth of a daughter in December 1991, although she and Icke had stopped seeing each other by then. Icke wrote in 1993 that he decided not to visit his daughter and had seen her only once, at Shaw’s request. Icke’s wife gave birth to the couple’s second son in November 1992.[68][69]

Green Party resignation and press conference

In March 1991, Icke resigned from the Green Party during a party conference, telling them he was about to be at the centre of “tremendous and increasing controversy”, and winning a standing ovation from delegates after the announcement.[53] A week later, shortly after his father died, Icke and his wife, Linda Atherton, along with their daughter and Deborah Shaw, held a press conference to announce that Icke was a son of the Godhead.[70][71] He told reporters the world was going to end in 1997. It would be preceded by a hurricane around the Gulf of Mexico and New Orleans, eruptions in Cuba, disruption in China, a hurricane in Derry, and an earthquake on the Isle of Arran. The information was being given to them by voices and automatic writing, he said. Los Angeles would become an island, New Zealand would disappear, and the cliffs of Kent would be underwater by Christmas.[72]

Wogan interview

The headlines following Icke’s press conference attracted requests for interviews from Nicky Campbell‘s BBC Radio One programme, for Terry Wogan‘s prime-time Wogan show, and Fern Britton‘s ITV chat show.[73]

Wogan introduced the 1991 segment with “The world as we know it is about to end”. Amid laughter from the audience, Icke demurred when asked if he was the son of God, replying that Jesus would have been laughed at too, and repeated that Britain would soon be devastated by tidal waves and earthquakes. Without these, “the Earth will cease to exist”. When Icke said laughter was the best way to remove negativity, Wogan replied of the audience: “But they’re laughing at you. They’re not laughing with you.”[73][74][75] The BBC was criticised for allowing it to go ahead; Des Christy of The Guardian called it a “media crucifixion”.[76][77]

The interview led to a difficult period for Icke. In May 1991, police were called to the couple’s home after a crowd of over 100 youths gathered outside, chanting “We want the Messiah” and “Give us a sign, David”.[78] Icke told Jon Ronson in 2001:

One of my very greatest fears as a child was being ridiculed in public. And there it was coming true. As a television presenter, I’d been respected. People come up to you in the street and shake your hand and talk to you in a respectful way. And suddenly, overnight, this was transformed into “Icke’s a nutter.” I couldn’t walk down any street in Britain without being laughed at. It was a nightmare. My children were devastated because their dad was a figure of ridicule.[65][79]

In 2006, Wogan interviewed Icke again for a special Wogan Now & Then series. Wogan was apologetic for his conduct in the 1991 interview.[80] However, in his autobiography, Mustn’t Grumble, Wogan described Icke as being a “ranting demagogue convinced we were all manipulated sheep”.[81]

Writing and lecturing

Early books

The Wogan interview separated Icke from his previous life, he wrote in 2003, although he considered it the making of him in the end, giving him the courage to develop his ideas without caring what anyone thought.[82] His book The Truth Vibrations, inspired by his experience in Peru, was published in 1991.

Between 1992 and 1994, he wrote five books, all published by mainstream publishers, four in 1993. Love Changes Everything (1992), influenced by the “channelling” work of Deborah Shaw, is a theosophical work about the origin of the planet, in which Icke writes with admiration about Jesus. Days of Decision (1993) is an 86-page summary of his interviews after the 1991 press conference; it questions the historicity of Jesus but accepts the existence of the Christ spirit. Icke’s autobiography, In the Light of Experience, was published the same year,[83] followed by Heal the World: A Do-It-Yourself Guide to Personal and Planetary Transformation (1993).

The Robots’ Rebellion

In his 2001 documentary about Icke, Jon Ronson cited this cartoon, “Rothschild” (1898), by Charles Léandre, arguing that Jews have long been depicted as lizard-like creatures who are out to control the world.[84]

Icke’s The Robots’ Rebellion (1994), a book published by Gateway, attracted allegations that his work was antisemitic. According to historian Nicholas Goodrick-Clarke, the book contains “all the familiar beliefs and paranoid clichés” of the US conspiracists and militia.[85] It claims that a plan for world domination by a shadowy cabal, perhaps extraterrestrial, was laid out in The Protocols of the Elders of Zion (c. 1897).

The Protocols of the Elders of Zion is an anti-Semitic literary forgery,[86] probably written under the direction of the Russian secret police in Paris, purporting to reveal a conspiracy by the Jewish people to achieve global domination. It was exposed as a forgery in 1920 by Lucien Wolf and the following year by Philip Graves in The Times.[87] Once exposed, it disappeared from mainstream discourse until interest in it was renewed by the American far right in the 1950s.[87] Interest in it was further spread by conspiracy groups on the Internet.[88] According to Michael Barkun, Icke’s reliance on the Protocols in The Robots’ Rebellion is “the first of a number of instances in which Icke moves into the dangerous terrain of antisemitism”.[89][90]

Icke took both the extraterrestrial angle and the focus on the Protocols from Behold a Pale Horse (1991) by Milton William Cooper, who was associated with the American militia movement; chapter 15 of Cooper’s book reproduces the Protocols in full.[91][92][93] The Robots’ Rebellion refers repeatedly to the Protocols, calling them the Illuminati protocols, and defining Illuminati as the “Brotherhood elite at the top of the pyramid of secret societies world-wide”. Icke adds that the Protocols were not the work of the Jewish people, but of Zionists.[94][95]

The Robots’ Rebellion was greeted with dismay by the Green Party’s executive. Despite the controversy over the press conference and the Wogan interview, they had allowed Icke to address the party’s annual conference in 1992 – a decision that led one of its principal speakers, Sara Parkin, to resign – but after the publication of The Robot’s Rebellion they moved to ban him.[91][96][97][98][99] Icke wrote to The Guardian in September 1994 denying that The Robots’ Rebellion was anti-Semitic, and rejecting racism, sexism and prejudice of any kind, while insisting that whoever had written the Protocols “knew the game plan” for the twentieth century.[100][101]

Self-publishing

Why do we play a part in suppressing alternative information to the official line of the Second World War? How is it right that while this fierce suppression goes on, free copies of the Spielberg film, Schindler’s List, are given to schools to indoctrinate children with the unchallenged version of events. And why do we, who say we oppose tyranny and demand freedom of speech, allow people to go to prison and be vilified, and magazines to be closed down on the spot, for suggesting another version of history.— And the Truth Shall Set You Free (1995)[9]

Icke’s next manuscript, And the Truth Shall Set You Free (1995), contained a chapter questioning aspects of the Holocaust, which caused a rift with his publisher, Gateway.[95][102][23] In the book Icke suggested that Jews funded the Holocaust by quoting and seconding Gary Allen‘s claim that “The Warburgs, part of the Rothschild empire, helped finance Adolf Hitler”. In his view, schools “indoctrinate children with the unchallenged version of events” with the mainstream account of the Holocaust thanks to their use of free copies of the film Schindler’s List (1993).[103][24] After borrowing £15,000 from a friend, Icke established Bridge of Love Publications, later called David Icke Books. He self-published And the Truth Shall Set You Free and all his subsequent books.

According to Lewis and Kahn, Icke aimed to consolidate all conspiracy theories into one project with unlimited explanatory power. His books sold 140,000 copies between 1998 and 2011, at a value of over £2 million.[104] Thirty thousand copies of The Biggest Secret (1999) were in print months after publication, according to Icke,[105] and it was reprinted six times between 1999 and 2006. His 2002 book Alice in Wonderland and the World Trade Center Disaster became a long-standing top-five bestseller in South Africa.[7] By 2006, his website was gaining 600,000 hits a week, and by 2011 his books had been translated into 11 languages.[104]

Lecturing

Icke speaking in June 2013

Icke has held public lectures around the world, and by 2006 had spoken in at least 25 countries.[7] He spoke for seven hours to 2,500 people at the Brixton Academy, London, in 2008,[16] and the same year addressed the University of Oxford‘s debating society, the Oxford Union.[106][107][108] His book tour for Human Race Get Off Your Knees: The Lion Sleeps No More (2010) included a sold-out talk to 2,100 in New York City and £83,000 worth of ticket sales in Melbourne. In October 2012, he spoke for 11-hours to 6,000 people at London’s Wembley Arena.[109]

Second marriage, politics, television

In 1997 Icke met his second wife, Pamela Leigh Richards, in Jamaica. He and Linda Atherton divorced in 2001,[110] and he and Richards were married the same year.[citation needed] They separated in 2008 and divorced in 2011.[80]

Icke stood for parliament in the 2008 by-election for Haltemprice and Howden (a constituency in the East Riding of Yorkshire), on the issue of “Big Brother – The Big Picture”. He came 12th out of 26 candidates, with 110 votes (0.46%), resulting in a lost deposit.[111][112] He explained that he was standing because “if we don’t face this now we are going to have some serious explaining to do when we are asked by our children and grandchildren what we were doing when the global fascist state was installed. ‘I was watching EastEnders, dear’ will not be good enough.”[113][114]

In November 2013, Icke launched an Internet television station, The People’s Voice, broadcast from London. He founded the station after crowdsourcing over £300,000 and worked for it as a volunteer until March 2014. Later that year the station stopped broadcasting.[115][116]

Conspiracy theories

Icke combines New Age philosophical discussion about the universe and consciousness with conspiracy theories about public figures being reptilian humanoids and paedophiles. He argues in favour of reincarnation; a collective consciousness that has intentionalitymodal realism[17] (that other possible worlds exist alongside ours); and the law of attraction[117] (that good and bad thoughts can attract experiences).[118][15]

In The Biggest Secret (1999), he introduced the idea that many prominent figures derive from the Anunnaki, a reptilian race from the Draco constellation.[119] In Human Race Get Off Your Knees: The Lion Sleeps No More (2012), he identified the Moon (and later Saturn) as the source of holographic experiences, broadcast by the reptiles, that humanity interprets as reality.[120][15]

Icke is a critic of the scientific method, describing it as “bollocks” in 2013. When asked by The Sunday Times to explain the existence of television, he said “It’s not that all science is bollocks,” but rather “[t]he basis of the way science judges reality is bollocks.”[121] He also thinks climate change is a hoax.[122]

Infinite dimensions

Icke believes that the universe is made up of “vibrational” energy, and consists of an infinite number of dimensions that share the same space, just like television and radio frequencies, and that some people can tune their consciousness to other wavelengths.[17][15] He stated in an interview with The Guardian that:

Our five senses can access only a tiny frequency range, like a radio tuned to one station. In the space you are occupying now are all the radio and television stations broadcasting to your area. You can’t see them and they can’t see each other because they are on different wavelengths. But move your radio dial and suddenly there they are, one after the other. It is the same with the reality we experience here as “life”. What we call the “world” and the “universe” is only one frequency range in an infinite number sharing the same space.[16]

Icke believes that time is an illusion; there is no past, or future, and only the “infinite now” is real, and that humans are an aspect of consciousness, or infinite awareness, which he describes as “all that there is, has been, and ever can be”.[15]

Reptoid humanoids

Further information: New World Order (conspiracy theory)The Draco constellation from Firmamentum Sobiescianum sive Uranographia (1690) by Johannes Hevelius. Icke’s “reptoid hypothesis” posits that humanity is ruled by descendants of reptilians from Draco.[123]

Icke believes that an inter-dimensional race of reptilian beings called the Archons have hijacked the earth and are stopping humanity from realising its true potential.[15][20] He claims they are the same beings as the Anunnakideities from the Babylonian creation myth the Enûma Eliš, and the fallen angels, or Watchers, who mated with human women in the Biblical apocrypha.[19]

He believes that a genetically modified human/Archon hybrid race of shape-shifting reptilians, known as the “Babylonian Brotherhood” or the Illuminati, manipulate global events to keep humans in constant fear, so the Archons can feed off the “negative energy” this creates.[15][124] In The Biggest Secret, Icke identified the Brotherhood as descendants of reptilians from the constellation Draco, and said they live in caverns inside the earth.[125]

Icke said in an interview:

When you get back into the ancient world, you find this recurring theme of a union between a non-human race and humans – creating a hybrid race. From 1998, I started coming across people who told me they had seen people change into a non-human form. It’s an age-old phenomenon known as shape-shifting. The basic form is like a scaly humanoid, with reptilian rather than humanoid eyes.[126]

Icke claims the first reptilian-human breeding programmes took place 200,000–300,000 years ago (perhaps creating Adam),[127] and the third (and latest) 7,000 years ago. He claims the hybrids of the third programme, which are more Anunnaki than human, currently control the world. He writes in The Biggest Secret, “The Brotherhood which controls the world today is the modern expression of the Babylonian Brotherhood of reptile-Aryan priests and ‘royalty’”. Icke states that they came together in Sumer after “the flood“, but originated in the Caucasus.[128] He explains that when he uses the term “Aryan” he means “the white race.”[129]

Icke has stated that the reptilians come from not only another planet but another dimension, the lower level of the fourth dimension (the “lower astral dimension“), the one nearest the physical world.[17] From this dimension they control the planet, although just as fourth-dimensional reptilians control us, they in turn are controlled by a fifth dimension.[17] Michael Barkun argues that Icke’s introduction of different dimensions allowed him to skip awkward questions about how the reptilians got here.[105]

Icke believes that the only way this “Archontic” influence can be defeated is if people wake up to “the truth” and fill their hearts with love.[15]

Icke briefly introduced his ideas about ancient astronauts in The Robot’s Rebellion (1994), citing Milton William Cooper‘s Behold a Pale Horse (1991), and expanded it in And the Truth Shall Set You Free (1995), citing Barbara Marciniak’s Bringers of the Dawn (1992).[91][92]

Religious studies lecturer David G. Robertson writes that Icke’s reptilian idea is adapted from Zecharia Sitchin‘s The 12th Planet (1976), combined with material from Credo Mutwa, a Zulu healer.[130] Sitchin suggested that the Anunnaki came to Earth for its precious metals. Icke has said that they came for what he refers to as “mono-atomic gold”, which he claims can increase the capacity of the nervous system ten-thousandfold, and that after ingesting it the Anunnaki can process vast amounts of information, speed up trans-dimensional travel, and shapeshift from reptilian to human.[131][132] Lewis and Kahn argue that Icke is using allegory to depict the alien, and alienating, nature of global capitalism.[18] Icke has said he is not using allegory.[133]

As of 2003, Icke claims the reptilian bloodline includes all (then 43) American presidents, three British and two Canadian prime ministers, several Sumerian kings and Egyptian pharaohs, and a smattering of celebrities. Key bloodlines are said to include the RockefellersRothschilds, various European aristocratic families, the establishment families of the Eastern United States, and the British House of Windsor.[89] Icke has claimed that he saw former British Prime Minister Ted Heath‘s eyes turn entirely “jet black” while the two men waited for a Sky News interview in 1989.[134][16] He confirmed to Andrew Neil in May 2016 that he believes the British royal family are shape-shifting lizards.[21] In 2001, Icke said the Queen Mother was “seriously reptilian”.[89] The Rothschilds, in Icke’s opinion, are also blood-drinking Satan-worshipers, which Daniel Allington and David Toube argued in 2018 was part of a revival of medieval anti-Semitic attitudes towards Jews.[135]

Icke sometimes calls the reptilian plot the “unseen”. After a 2018 talk by Icke in Southport, UK, Michael Marshall reported:

The appearance of the ‘unseen’ in the Middle East 6,000 years ago seems to be no coincidence, and it’s little wonder that Icke’s work is so often accused of anti-Semitism. However, if we were to accept that Icke himself does not hold such views, and that his work is merely co-opted by groups who undeniably are anti-Semitic, we also have to acknowledge that Icke often does his case no favours.[136]

Critics view Icke’s “reptilians” and other theories as anti-Semitic,[25][137][138] and accuse him of Holocaust denial.[25] Critics have claimed that Icke’s reptilians are symbolic representations of Jews, which Icke called “total friggin’ nonsense”, adding, “this is not a plot on the world by Jewish people”.[139] Icke has rejected the assertion he is a Holocaust denier.[26]

Brotherhood aims and institutions

Icke states that at the apex of the Babylonian Brotherhood stand the Global Elite, and at the top of the Global Elite are what Icke has referred to as the “Prison Wardens”. Icke claims the brotherhood’s goal, or their “Great Work of Ages”, is a microchipped population, a world government, and a global Orwellian fascist state or New World Order, which he claims will be a post-truth era where freedom of speech is ended.[140][15][21][22][92]

Icke believes that the brotherhood uses human anxiety as energy and that the Archons keep humanity trapped in a “five sense reality” so they can feed off the negative energy created by fear and hate.[15][18] In 1999 he wrote, “Thus we have the encouragement of wars, human genocide, the mass slaughter of animals, sexual perversions which create highly charged negative energy, and black magic ritual and sacrifice which takes place on a scale that will stagger those who have not studied the subject.”[127] Icke proposes that human sacrifice “to the gods” in the ancient world was for the reptilians’ benefit, especially sacrifice of children, because “at the moment of death by sacrifice a form of adrenaline surges through the body, accumulating at the base of the brain, and is apparently more potent in children”, claiming “this is what the reptilians and their crossbreeds want”. He suggests that these sacrifices continue to this day.[127] He also claims the reptilians and their hybrid bloodlines engage in paedophilia and cannibalism.[141]

It is claimed that the brotherhood either created or controls the United Nations, International Monetary FundRound TableCouncil on Foreign RelationsChatham HouseClub of RomeRoyal Institute of International AffairsTrilateral Commission and Bilderberg Group, as well as the media, military, CIAMI6Mossad, science, religion, and the Internet, with witting or unwitting support from the London School of Economics.[65][92][142][143][144][145] In an interview in February 2019, Icke was asked about his beliefs and replied, “They’re very clever in their systems of manipulation, which is overwhelmingly psychological manipulation, because if you can manipulate perceptions to believe that Osama bin Laden was behind 9/11, then you’ll get support to invade Afghanistan”.[146]

Problem–reaction–solution

Icke uses the phrase “problem–reaction–solution” to explain how he believes the Illuminati agenda advances. According to Icke, the Illuminati guide us in the direction they desire by creating false problems, which allows them to give their desired solution to the problem they created.[147] He also refers to this process as “order out of chaos”.[148] In 2018 researchers looking at the psychological effects of Icke’s belief system argued that “problem–reaction–solution” resembles the misinterpretation of the Hegelian thesis, antithesis, synthesis triad popularized by Chalybäus.[149]

Incidents and issues Icke attributes to the Illuminati, or “Global Elite”, include the Oklahoma City bombingDunblaneColumbine9/11 (which Icke believes was an “inside job” to provide an excuse to advance an agenda of regime change across the world), 7/7global warmingchemtrailswater fluoridation, the death of Princess Diana, the assassination of John F. Kennedy and Agenda 21.[126][150][151][152][153] These incidents allow them to respond in whatever way they intended to act in the first place.[148]

One of the methods Icke claims they use is creating fake opposites, or what he calls “opposames”, such as the Axis and Allied powers of World War II, which he believes were used to provoke the creation of the European Union and the state of Israel.[147] Icke argues that to ensure the outcome they want they have to control both sides.[22] He believes that US presidents George W. BushBarack Obama and Donald Trump are part of a false political divide. Despite the presidency belonging to the Republican Party then the Democratic Party, then going back to the Republicans, Icke claims they are all pushing the same agenda of regime change in the Middle East, a goal set out in the early 2000s in a document called The Project for the New American Century.[22] Icke claims that this dialectic allows the Illuminati to gradually move societies toward totalitarianism without challenge, a process he calls the “totalitarian tiptoe”.[147]

In Tales From The Time Loop (2003), Icke argues that the Illuminati create religious, racial, ethnic and sexual division to divide and rule humanity but believes that the many can only be controlled by the few if they allow themselves to be and that the power the Illuminati have is the power the people give them.[154][155] “Divide and rule is the bottom line of all dictatorships… Arab is turned against Jew, black against white, Right against Left. Unplugging from the Matrix means refusing to recognise these illusory fault lines. We are all One. I refuse to see a Jew as different from an Arab and vice versa. They are both expressions of the One and need to be observed and treated the same, none more or less important than the other. I refuse to see black people in terms that I would not see white, nor to see the ‘Left’ as I would not see the ‘Right’. How could it be any different, except when we believe the illusion of division is real? If we do that, the Matrix has us.”[155]

Icke’s solution is peaceful non-compliance, which he believes will disempower “the elite”.[154]

Saturn–Moon Matrix

The Moon Matrix is introduced in Human Race Get Off Your Knees: The Lion Sleeps No More (2010), in which Icke suggests that the Earth and the collective human mind are manipulated from the Moon, a spacecraft and inter-dimensional portal the reptilians control. The Moon Matrix is a broadcast from that spacecraft to the human body–computer, specifically to the left hemisphere of the brain, which gives us our sense of reality: “We are living in a dreamworld within a dreamworld – a Matrix within the virtual-reality universe – and it is being broadcast from the Moon. Unless people force themselves to become fully conscious, their minds are the Moon’s mind.”[156][157] Will Storr, writing for The Sunday Times in 2013, ponders if Icke’s ideas suddenly “pop” into his head. On page 299 of Human Race Get Off Your Knees, Icke writes about working at his computer on the book and having “the overwhelming feeling out of ‘nowhere’ that the moon was not ‘real’. By ‘real’ I mean not a ‘heavenly body’, but an artificial construct (or hollowed-out planetoid) that has been put there to control life on Earth — which it does. I have pondered this possibility a few times over the years, but this time I just ‘knew’. It was like an enormous penny had suddenly dropped”.[121]

This idea is further explored in Icke’s Remember Who You Are: Remember ‘Where’ You Are and Where You ‘Come’ From (2012), where he introduces the concept of the “Saturn–Moon Matrix”. In this more recent conceptualization, the rings of Saturn (which Icke believes were artificially created by reptilian spacecraft) are the ultimate source of the signal, while the Moon functions as an amplifier.[120][page needed][154] He claims that frequencies broadcast from the hexagonal storm on Saturn are amplified through the hollow structure of our artificial moon keeping humanity trapped in a holographic projection.[15]

5G and COVID-19

See also: Misinformation related to the COVID-19 pandemic

David Icke has been identified by the Center for Countering Digital Hate as a leading producer of misinformation about COVID-19 as well as anti-Semitic content.[158] In April 2020, Icke claimed in a YouTube video on Brian Rose‘s London Real channel that there was a link between the COVID-19 pandemic and 5G mobile phone networks. The video was removed from the platform, and YouTube tightened its rules to prevent its website being used to spread conspiracy theories about the COVID-19 pandemic.[159] It was later also deleted from Facebook.[160] Multiple mobile phone masts were subject to arson attacks at this time, as well as telecom engineers being abused.[161] Nick Cohen in The Observer thought Icke was ambiguous as to whether the phone masts should be left alone. Icke said in the London Real interview: “If 5G continues and reaches where they want to take it, human life as we know it is over… so people have to make a decision.”[159][162][163]

London Live screened a similar interview with Icke about coronavirus on 8 April 2020.[164] He made an unsupported claim that Israel was using the crisis “to test its technology” and suggested any attempt to require people to be vaccinated against COVID-19 amounted to “fascism”.[165]

After Ofcom‘s formal investigation, the UK media regulator decided the 80-minute interview broke the terms of the broadcasting code as it “expressed views which had the potential to cause significant harm to viewers in London during the pandemic” which “were made without the support of any scientific or other evidence.”[166]

Icke’s main page on Facebook was deleted on 1 May 2020, while other pages on the site promoting Icke with a smaller readership remained on the platform.[167] Facebook said it had removed Icke’s page for its “health misinformation that could cause physical harm”.[168] His YouTube channel was deleted a day later. A spokeswoman for YouTube told BBC News: “YouTube has clear policies prohibiting any content that disputes the existence and transmission of COVID-19 as described by the WHO and the NHS. Due to continued violation of these policies, we have terminated David Icke’s YouTube channel.” Icke’s appearances in videos uploaded by other users were only to be removed if their content breached the same rules.[169]

On 29 August 2020, Icke was a speaker at an anti-lockdown protest in Trafalgar Square, London, organised under the Unite for Freedom banner. During his speech he stated, “Anyone with a half a brain cell on active duty can see coronavirus is nonsense”[170] and, “We have a virus so intelligent that it only infects those taking part in protests the government wants to stop”.[171] He also stated, “This world is controlled by a tiny few people” who “impose their agenda on billions of people”. He told the police who were present at the rally that they were “enforcing fascism that your own children will have to live with” and urged them to “join us and stop serving the psychopaths”.[171]

In early November 2020, Twitter permanently suspended Icke’s account on the platform for having violated its rules regarding COVID-19 misinformation.[172][173]

Reception

Interest in Icke’s conspiracy theories is widespread and has cut across political, economic, and religious divides. His audiences hold a wide range of beliefs, uniting individuals, and left and right wing groups; from New Agers, and Ufologists,[7][105] as well as far-right Christian Patriots, and the UK neo-Nazi group Combat 18, which supports his writings.[7] Icke’s work is representative of a major global countercultural trend.[7] American novelist Alice Walker is an admirer of Icke’s writings,[103][24][174][175] along with comedian Russell Brand,[176][177] and musician Mick Fleetwood.[178] Icke has emerged as a professional conspiracy theorist[1] within a global counter-cultural movement that combines New World Order conspiracism, the truther movement and anti-globalisation, with an extraterrestrial conspiracist subculture.[7]

Accusations of antisemitism

There is a strong strain of anti-Semitic conspiracy theorizing that makes ufological connections, including especially the work of Milton William Cooper (1991) and David Icke (e.g., 1997). Both are controversial but still well known in both right-wing conspiracist and ufological subcultures.— Christopher F. Roth, Ufology as Anthropology: Race, Extraterrestrials, and the Occult[179]

Jonathan A. Greenblatt, chief executive of the Anti-Defamation League told The New York Times in December 2018: “There is no fair reading of Icke’s work that could be seen as not anti-Semitic”.[180] However, Icke has repeatedly denied the accusation that he is an antisemite. In 2001, when he was questioned by Jon Ronson, Icke declared that The Protocols of the Elders of Zion is evidence not of a Jewish plot but of a reptilian plot. He also said, “the families in positions of great financial power obsessively interbreed with each other. But I’m not talking about one earth race, Jewish or non-Jewish. I’m talking about a genetic network that operates through all races, this bloodline being a fusion of human and reptilian genes… let me make myself clear: this does not in any way relate to an earth race.”[181] In an article in The Algemeiner, the writer commented: “Yet when he goes through a list of people in power who he considers to be ‘Rothschild Zionists,’ they all happen to be Jews (with many of them never claiming to be Zionists at all.)”[182] According to Mark Gardner of the Community Security Trust, Icke believes a “‘Rothschild Zionist’ conspiracy controls the world, driving global conflict through NATO and seeking World War Three, which will begin between Zionists and Muslims.” Such claims about the Rothschilds have a long history as an antisemitic theme.[138]

Icke states in And the Truth Shall Set you Free (1996):

Why do we play a part in suppressing alternative information to the official line of the Second World War? How is it right that while this fierce suppression goes on, free copies of the Spielberg film, Schindler’s List, are given to schools to indoctrinate children with the unchallenged version of events. And why do we, who say we oppose tyranny and demand freedom of speech, allow people to go to prison and be vilified, and magazines to be closed down on the spot, for suggesting another version of history.[9]

Icke claims that the antisemitic forgery The Protocols of the Elders of Zion is genuine, explaining in And the Truth Shall Set you Free:

I strongly believe that a small Jewish clique which has contempt for the mass of Jewish people worked with non-Jews to create the First World War, the Russian Revolution, and the Second World War… They then dominated the Versailles Peace Conference and created the circumstances which made the Second World War inevitable. They financed Hitler to power in 1933 and made the funds available for his rearmament.[9][183]

In the book, Yair Rosenberg reports, Icke uses the words “Jewish” on 241 occasions, and “Rothschild” on 374 occasions.[24] Icke claims that Jews themselves are to blame for antisemitism (a classic Nazi claim that can be traced to Adolf Hitler):

Thought patterns in the collective Jewish mind have repeatedly created that physical reality of oppression, prejudice and racism which matches the pattern – the expectation – programmed into their collective psyche. They expect it; they create it.[184]

In The Trigger: The Lie That Changed the World – Who Really Did It and Why (2019), Icke writes that the official explanation for the September 11 attacks is false and is intended to cover up the “massive and central involvement in 9/11 by the Israeli government, [Israeli] military and [Israeli] intelligence operatives.”[185]

In his book UFOs, Conspiracy Theories and the New Age, David G. Robertson disputes that Icke is antisemitic, saying that it is just easier for some people to accept that when Icke says reptilians he really means Jews than that he literally means extraterrestrial reptilians control world politics. Robertson also says that to believe the accusations of antisemitism you must ignore numerous things, such as the many high-profile people Icke names as reptilian who are not Jewish (a point also made by Jon Ronson in his 2001 documentary The Secret Rulers of the World, Part 2: “David Icke, The Lizards and The Jews”), Icke’s frequent statements that he is speaking literally and not metaphorically, and that Icke identifies the supposedly reptilian ruling elite as “Aryan” in several places. Robertson also writes that Icke denounces racism, having called it “the ultimate idiocy”.[133] In 2018, in response to allegations of antisemitism, Icke stated to Vox that: “My philosophy and view of life is that we are all points of attention within the same state of Infinite Awareness and the labels we are given and give ourselves are merely temporary experiences and not who we are… Thus to me all racism is ridiculous and completely missing the point of who we are and where we are.”[103]

Following complaints from the Canadian Jewish Congress in 2000, Icke was briefly detained by immigration officials in Canada, where he was booked for a speaking tour,[65] and his books were removed from Indigo Books, a Canadian chain. Several stops on the tour were cancelled by their venues, as was a lecture in London.[186][187] Two venues in Berlin cancelled live events scheduled to be hosted by Icke in 2017 following accusations of antisemitism. The Maritim hotel did not give a reason for the cancellation, but the Carl Benz Arena wrote on its Facebook page that it was due to the “contentious nature and the contradictory statements, which for us as a politically neutral event venue do not give a clear picture.”[25] An event to be held at Manchester United‘s Old Trafford was also cancelled in 2017, with the venue saying it was due to Icke’s “objectionable views.”[188] After Icke’s talk in Vancouver on 2 September 2017, the Canadian Jewish News called him “a controversial conspiracy theorist, antisemite and Holocaust denier”. Micheal Vonn, the British Columbia Civil Liberties Association’s policy director, told the newspaper: “You are free to be a racist in Canada, you are free to say so and tell others that they should be, too.”[189]

In February 2019, the Australian Government cancelled Icke’s visa ahead of a planned speaking tour[190] on the grounds of his character.[191] Immigration Minister David Coleman upheld the complaint made by Dvir Abramovich, the chairman of the Anti-Defamation Commission.[192] This decision was applauded by both major political parties. Labor’s immigration spokesman, Shayne Neumann, said, “Labor welcomes the fact that the Government did what we called on them to do and refused David Icke’s visa application.”[191] Icke issued a statement in which he described himself as “the victim of a smear campaign from politicians who have been listening to special interest groups”.[193]

Other responses

Political Research Associates has described Icke’s politics as “a mishmash of most of the dominant themes of contemporary neofascism, mixed in with a smattering of topics culled from the U.S. militia movement.” He opposes gun control, and claims that many mass shootings were orchestrated to increase public opposition to guns. He believes the U.S. government carried out the Oklahoma City bombing.[9] He endorses or recommends antisemitic and far-right publications such as Spotlight and On Target, the magazine of the white supremacist group the “British League of Rights“, and has been closely associated with antisemitic “New Age” periodicals such as Nexus and Rainbow Ark, a “New Age” magazine which is financed by far-right activists and affiliated with the neo-Nazi National Front.[184][194] The neo-Nazi terrorist group Combat 18 promoted Icke’s public speaking events in its internal journal Putsch; of one such event, the journal wrote approvingly:

[Icke] spoke of “the sheep” and how the Zionist-operated government, sorry, “Illuminati“, uses them for its own ends. He began to talk about the big conspiracy by a group of bankers, media moguls, etc. – always being clever enough not to mention what all these had in common.[9]

Michael Barkun has described Icke’s position as New Age conspiracism, writing that Icke is the most fluent of the genre,[195] describing his work as “improvisational millennialism“, with an end-of-history scenario involving a final battle between good and evil. Barkun defines improvisational millennialism as an “act of bricolage“: because everything is connected in the conspiracist world view, every source can be mined for links.[196] Barkun argues that Icke has actively tried to cultivate the radical right: “There is no fuller explication of [their] beliefs about ruling elites than Icke’s.” He also notes that Icke regards Christian patriots as the only Americans who understand the “New World Order“.[197] In 1996 Icke spoke to a conference in Reno, Nevada, alongside opponents of the Brady Handgun Violence Prevention Act, including Kirk Lyons, a lawyer who has represented the Ku Klux Klan.[105] Icke has never been a member of any right-wing group, and he has criticised them.[133]

Relying on Douglas Kellner‘s distinction between clinical paranoia and a “critical paranoia” that confronts power, Richard Kahn and Tyson Lewis argue that Icke displays elements of both and that his reptilian hypothesis and his “postmodern metanarrative” may be allegorical, a Swiftian satire which is used to give ordinary people a narrative with which to question what they see around them and alert them to the alleged emergence of a global fascist state.[198][199][200]

People influenced by Icke have asked public figures if they are lizards. An Official Information Act request was filed in New Zealand in 2008 to ask John Key, then prime minister, whether he was a lizard. Facebook CEO Mark Zuckerberg was asked the same during a Q&A in 2016. Both men said they were not lizards.[201] In a 2013 survey in the United States by Public Policy Polling, 4% believed that “‘lizard people’ control our societies”.[202][203][204]

Selected works

Books

  • (1983) It’s a Tough Game, Son!, London: Piccolo Books. ISBN 0-330-28047-3
  • (1989) It Doesn’t Have To Be Like This: Green Politics Explained, London: Green Print. ISBN 1-85425-033-7
  • (1991) The Truth Vibrations, London: Gateway. ISBN 1-85860-006-5
  • (1992) Love Changes Everything, London: Harper Collins Publishers. ISBN 1-85538-247-4
  • (1993) In the Light of Experience: The Autobiography of David Icke, London: Warner Books. ISBN 0-7515-0603-6
  • (1993) Days of Decision, London: Jon Carpenter Publishing. ISBN 1-897766-01-7
  • (1993) Heal the World: A Do-It-Yourself Guide to Personal and Planetary Transformation, London: Gateway. ISBN 1-85860-005-7
  • (1994) The Robot’s Rebellion, London: Gateway. ISBN 1-85860-022-7
  • (1995) … And the Truth Shall Set You Free, Ryde: Bridge of Love Publications. ISBN 0-9538810-5-9
  • (1996) I Am Me, I Am Free: The Robot’s Guide to Freedom, New York: Truth Seeker. ISBN 0-9526147-5-8
  • (1998) Lifting the Veil: David Icke interviewed by Jon Rappoport. New York: Truth Seeker. ISBN 0-939040-05-0
  • (1999) The Biggest Secret: The Book That Will Change the World, Ryde: Bridge of Love Publications. ISBN 0-9526147-6-6
  • (2001) Children of the Matrix, Ryde: Bridge of Love Publications. ISBN 0-9538810-1-6
  • (2002) Alice in Wonderland and the World Trade Center Disaster, Ryde: Bridge of Love Publications. ISBN 0-9538810-2-4
  • (2003) Tales from the Time Loop, Ryde: Bridge of Love Publications. ISBN 0-9538810-4-0
  • (2005) Infinite Love Is the Only Truth: Everything Else Is Illusion, Ryde: Bridge of Love Publications. ISBN 0-9538810-6-7
  • (2007) The David Icke Guide to the Global Conspiracy (and how to end it), Ryde: David Icke Books Ltd. ISBN 978-0-9538810-8-6
  • (2010) Human Race Get Off Your Knees: The Lion Sleeps No More, Ryde: David Icke Books Ltd. ISBN 978-0-9559973-1-0
  • (2012) Remember Who You Are: Remember ‘Where’ You Are and Where You ‘Come’ From, Ryde: David Icke Books Ltd. ISBN 0-9559973-3-X
  • (2013) The Perception Deception: Or … It’s All Bollocks — Yes, All of It, Ryde: David Icke Books Ltd. ISBN 978-0-955997389
  • (2016) Phantom Self (And how to find the real one), Ryde: David Icke Books Ltd. ISBN 978-0-9576308-8-8
  • (2017) Everything You Need To Know But Have Never Been Told, Ryde: David Icke Books Ltd. ISBN 978-1527207264
  • (2019) The Trigger: The Lie That Changed The World, Ryde: David Icke Books Ltd. ISBN 978-1-916025806

Videos

  • (1994) The Robots’ Rebellion
  • (1996) Turning of the Tide
  • (1998) The Freedom Road
  • (1999) David Icke: The Reptilian Agenda, with Zulu Sanusi (Shaman) Credo Mutwa
  • (1999) David Icke: Revelations of a Mother Goddess, with Arizona Wilder
  • (2000) David Icke Live in Vancouver: From Prison to Paradise
  • (2003) Secrets of the Matrix
  • (2006) Freedom or Fascism: The Time to Choose
  • (2008) David Icke Live at the Oxford Union Debating Society on YouTube
  • (2008) Beyond the Cutting Edge: Live from Brixton Academy
  • (2008) David Icke: Big Brother, the BIG Picture
  • (2010) The Lion Sleeps No More
  • (2012) Return to Peru
  • (2012) Remember Who You Are: Live at Wembley Arena
  • (2014) Awaken: Live from Wembley Arena
  • (2017) Worldwide Wakeup Tour Live
  • (2019) Renegade

See also

References

Citations

  1. Jump up to:a b c Barkun, Michael (2011). Chasing Phantoms: Reality, Imagination, and Homeland Security Since 9/11. University of North Carolina Press. p. 72. ISBN 978-0807877692.
  2. ^ Dunning, Bob (30 November 2002). “David Icke Coventry City”. Archived from the original on 3 January 2003.
  3. ^ “Conspiracy Theories — The Reptilian Elite”Time. 20 November 2008. ISSN 0040-781X. Retrieved 17 December 2018.
  4. ^ Doherty, Rosa (17 December 2018). “Acclaimed author Alice Walker recommends book by notorious conspiracy theorist David Icke”The Jewish Chronicle. Retrieved 17 December 2018 – via thejc.com.
  5. ^ Shabi, Rachel (27 November 2018). “How David Icke helped unite Labour’s factions against antisemitism”The GuardianISSN 0261-3077. Retrieved 17 December 2018.
  6. Jump up to:a b Bowlin, Ben; Fredrick, Matt; Brown, Noel (10 February 2017). “David Icke and the Rise of the Lizard People”stufftheydontwantyoutoknow.com (Podcast). Retrieved 3 March 2017.
  7. Jump up to:a b c d e f g Lewis & Kahn 2010, p. 75.
  8. ^ Robertson 2016, p. 121.
  9. Jump up to:a b c d e f g Offley, Will (29 February 2000). “David Icke And The Politics Of Madness Where The New Age Meets The Third Reich”Political Research Associates. Retrieved 2 August 2016.
  10. ^ Icke, David (1991). The Truth Vibrations. pp. 15–18.
  11. ^ Icke 1993, pp. 192–194.
  12. ^ Ronson, Jon (2001). Them: Adventures with Extremists. London: Picador. pp. 152–154.
  13. ^ Evans, Paul (3 March 2008). “Interview: David Icke”New Statesman. NS Media Group. Retrieved 5 May 2020.
  14. Jump up to:a b c Barkun 2003, p. 103.
  15. Jump up to:a b c d e f g h i j k l m n Ward, James (10 December 2014). “Mocked prophet: what is David Icke’s appeal?”New Humanist. Retrieved 15 June 2018.
  16. Jump up to:a b c d Doyle, Paul (17 February 2006). “David Icke”The Guardian. Retrieved 21 April 2020.
  17. Jump up to:a b c d e Icke 1999, pp. 26–27.
  18. Jump up to:a b c Lewis & Kahn 2010, p. 82.
  19. Jump up to:a b Icke 1999, pp. 19–25, 40.
  20. Jump up to:a b Lynskey, Dorian (6 November 2014). “Psycho lizards from Saturn: The godlike genius of David Icke!”New Statesman. Retrieved 13 April 2020.
  21. Jump up to:a b c Andrew Neil, “David Icke on 9/11 and lizards in Buckingham Palace theories”This Week, BBC (video), 20 May 2016, 00:04:02.
  22. Jump up to:a b c d Widdas, Henry (17 April 2018). “Being ‘red-pilled’ by David Icke has never been so entertaining… and terrifying”Lancashire Evening Post. Retrieved 15 June 2018.
  23. Jump up to:a b Offley, Will (23 February 2000). “Selected Quotes Of David Icke”Political Research Associates. Retrieved 7 July 2020.
  24. Jump up to:a b c d Rosenberg, Yair (17 December 2018). “The New York Times Just Published an Unqualified Recommendation for an Insanely Anti-Semitic Book”Tablet. Retrieved 7 July 2020.
  25. Jump up to:a b c d “Lizard conspiracist David Icke not wanted in Berlin”. Deutsche Welle. 23 February 2017. Retrieved 26 May 2018.
  26. Jump up to:a b Widdas, Henry (16 July 2018). “Icke: Reports of my madness have been greatly exaggerated”Lancashire Post. Retrieved 9 August 2018.
  27. ^ Icke 1993, pp. 28–30.
  28. Jump up to:a b Icke 1993, pp. 29, 33.
  29. ^ Newitt, Ned (21 March 2013). The Slums of Leicester. JMD Media Ltd. pp. 153, 159–160.
  30. Jump up to:a b David Icke, Tales from the Time Loop, Ryde: Bridge of Love Publications, 2003, pp. 2–3.
  31. ^ Icke 1993, pp. 36, 38.
  32. ^ Icke 1993, pp. 39–40.
  33. ^ Icke 1993, pp. 44, 46.
  34. ^ Icke 1993, pp. 54, 58.
  35. ^ Icke 1993, pp. 66–69.
  36. ^ Icke 1993, pp. 69–73.
  37. ^ Icke 1993, pp. 61–63.
  38. ^ Icke 1993, p. 61.
  39. ^ Icke 1993, pp. 82, 96, 253–254.
  40. ^ Robertson 2016, pp. 139–140, 147.
  41. ^ Icke 1993, pp. 72, 75.
  42. ^ Icke 1993, p. 78.
  43. ^ Icke 1993, pp. 79, 81, 83.
  44. ^ Icke 1993, pp. 85–86.
  45. ^ Icke 1993, pp. 88–91.
  46. ^ Icke 1993, pp. 91–92.
  47. ^ Icke 1993, pp. 93–95, 99–100.
  48. ^ Icke 1993, p. 98.
  49. ^ Icke 1993, p. 109.
  50. ^ Icke 1993, p. 104.
  51. ^ Icke, Tales from the Time Loop, p. 7.
  52. ^ Anonymous (14 November 1990). “Protester David Icke finally pays community charge”. The Guardian.
  53. Jump up to:a b Kennedy, Maev (20 March 1991). “Icke resigns Green Speaker and parliamentary roles”. The Guardian.
  54. Jump up to:a b Icke, David (1991). The Truth Vibrations. London: Aquarian Press. p. 13.
  55. ^ Icke, David. Days of Decision. p. 19.
  56. Jump up to:a b Icke, David (2016). Phantom Self. Ryde: David Icke Books. pp. 1–3.
  57. Jump up to:a b “Biography 1”davidickebooks.co.uk. David Icke. Archived from the original on 19 June 2011. Retrieved 8 June 2011.
  58. ^ “The 10 worst decisions in the history of sport”The ObserverGuardian News & Media. 12 January 2003.
  59. ^ Kay 2011, p. 179.
  60. ^ Robertson, David G. (7 September 2013). “David Icke’s Reptilian Thesis and the Development of New Age Theodicy”. International Journal for the Study of New Religions4 (1): 27–47. doi:10.1558/ijsnr.v4i1.27.
  61. ^ “Biography 2”davidickebooks.co.uk. David Icke. Archived from the original on 14 July 201. Retrieved 4 February 2021.
  62. ^ Icke, David. Tales from the Time Loop. pp. 12–13, 16.
  63. ^ Icke 1993, pp. 190, 208.
  64. ^ Icke 1993, p. 192.
  65. Jump up to:a b c d Extracts from Ronson, Jon. Them: Adventures with Extremists.. Ronson, Jon. “Beset by lizards (part one)”The Guardian. Ronson, Jon (17 March 2001). “Beset by lizards (part two)”The Guardian.
  66. ^ Taylor, Sam (20 April 1997). “So I was in this bar with the son of God…”. The Observer.
  67. ^ Robertson 2016, p. 130.
  68. ^ Icke 1993, pp. 223, 254.
  69. ^ Robertson 2016, pp. 134–135.
  70. ^ Icke 1993, pp. 188, 192–193.
  71. ^ Robertson 2016, pp. 130–131.
  72. ^ Ezard, John (28 March 1991). “‘Son and daughter of God’ predict apocalypse is nigh”. The Guardian.
  73. Jump up to:a b Robertson 2016, p. 131.
  74. ^ Ronson 2001, p. 154.
  75. ^ “The day David Icke told Terry Wogan “I’m the son of God””The Daily Telegraph. 29 April 2016.
  76. ^ Des Christy, “Crucifixion, courtesy of the BBC,” The Guardian, 6 May 1991.
  77. ^ Oppenheim, Maya (31 January 2016). “The most controversial moments from Sir Terry Wogan’s chat show”The Independent. Retrieved 3 May 2020.
  78. ^ “Icke taunted,” The Times, 27 May 1991.
  79. ^ Ronson 2001, p. 173.
  80. Jump up to:a b Robertson 2016, p. 147.
  81. ^ Wogan, Terry (2007) [2006]. Mustn’t Grumble. London: Orion. p. 158. ISBN 978-1409105893.
  82. ^ Icke, Tales from the Time Loop, 14, 17, 26.
  83. ^ Robertson 2016, pp. 133–135.
  84. ^ Ronson (Channel 4) 2001, 06:12 mins.
  85. ^ Goodrick-Clarke 2003, p. 291.
  86. ^ “Protocols of the Elders of Zion | The Holocaust Encyclopedia”United States Holocaust Memorial Museum. Retrieved 8 August 2020.
  87. Jump up to:a b Barkun 2003, pp. 50, 145–146.
  88. ^ Juliane Wetzel, “The Protocols of the Elders of Zion on the internet: How radical political groups are networked via anti-Semitic conspiracy theories,” in Esther Webman (ed.), The Global Impact of the Protocols of the Elders of Zion: A Century-Old Myth, New York: Routledge, 2012 (147–160), p. 148.
  89. Jump up to:a b c Barkun 2003, p. 104.
  90. ^ Also see Norman Simms, “Anti-Semitism: A Psychopathological Disease,” in Jerry S. Piven, Chris Boyd, Henry W. Lawton (eds.), Judaism and Genocide: Psychological Undercurrents of History, Volume IV, Lincoln, NE: Writers Club Press, 2002, 30ff.
  91. Jump up to:a b c Robertson 2016, p. 138.
  92. Jump up to:a b c d Goodrick-Clarke 2003.
  93. ^ For Cooper: Ed Vulliamy, Bruce Dirks, “New trial may solve riddle of Oklahoma bombing”The Guardian, 3 November 1997.
  94. ^ Icke, The Robots’ Rebellion, London: Gateway, 1992, p. 114.
  95. Jump up to:a b Honigsbaum, Mark (26 May 1995). “The Dark Side of David Icke”Evening Standard. London. Archived from the original on 28 April 1999.
  96. ^ “Greens bar Icke”The Independent, 12 September 1994.
  97. ^ Vivek Chaudhary, “Greens see red at ‘Son of God’s anti-Semitism’,” The Guardian, 12 September 1994.
  98. ^ Goodwin, Stephen (29 September 1994). “Icke factor could thwart Greens’ serious message”The Independent. Archived from the original on 2 June 2013.
  99. ^ Faucher-King, Florence (11 October 2005). Changing Parties: An Anthropology of British Political Conferences. Palgrave Macmillan UK. p. 264, note 10. ISBN 978-0-230-50988-7.
  100. ^ David Icke, “Down but speaking out among the Greens,” letters to the editor, The Guardian, 14 September 1994.
  101. ^ Barkun 2003, p. 144.
  102. ^ David Icke, “Chapter Seven: Master races”And the Truth Shall Set You Free, Ryde: Bridge of Love Publications, 1995, pp. 127–146.
  103. Jump up to:a b c Grady, Constance (20 December 2018). “The Alice Walker anti-Semitism controversy, explained”Vox. Retrieved 13 April 2020.
  104. Jump up to:a b Alexander, Harriet (4 December 2011). “David Icke – would you believe it?”The Sunday Telegraph. London. Retrieved 21 April 2020.
  105. Jump up to:a b c d Barkun 2003, p. 106.
  106. ^ Paul Evans, “Interview: David Icke”New Statesman, 3 March 2008.
  107. ^ Marre, Oliver (20 January 2008). “Pendennis”The Observer.
  108. ^ David Icke, “David Icke Live at the Oxford Union Debating Society”, produced by Linda Atherton, Commonage, February 2008.
  109. ^ Mesure, Susie (27 October 2012). “David Icke is not the Messiah. Or even that naughty. But boy, can he drone on”The Independent on Sunday. Retrieved 21 April 2020.
  110. ^ Robertson 2016, pp. 139–140.
  111. ^ “Haltemprice and Howden: Result in full”BBC News. 11 July 2008.
  112. ^ Wainwright, Martin; Stratton, Allegra (11 July 2008). “Haltemprice and Howden byelection: Davis sees off Loonies and claims victory in 42-day detention battle”The Guardian.
  113. ^ “David ICKE stood for the None (No Party)”VoteWise. Archived from the original on 13 February 2012. Retrieved 12 December 2010.
  114. ^ Naughton, Philippe (27 June 2008). “Reptilians beware – David Icke is back!”The Times. (subscription required)
  115. ^ Jivanda, Tomas (25 November 2013). “David Icke launches internet TV station The People’s Voice”The Independent.
  116. ^ “The People’s Voice 2.0”thepeoplesvoice.tv/. Archived from the original on 18 May 2016.
  117. ^ Icke 1999, pp. 30–40.
  118. ^ For law of attraction, Icke, Children of the Matrix, 291 ff.
  119. ^ Icke 1999, pp. 5–9.
  120. Jump up to:a b David Icke, Remember Who You Are: Remember ‘Where’ You Are and Where You ‘Come’ From, Ryde: David Icke Books, 2012.
  121. Jump up to:a b Storr, Will (16 June 2013). “It’s a jungle out there”The Sunday Times. London. Retrieved 21 April 2020. (subscription required)
  122. ^ Readfearn, Graham (6 December 2016). “More terrifying than Trump? The booming conspiracy culture of climate science denial”The Guardian. Retrieved 21 April 2020.
  123. ^ Barkun 2003, p. 105.
  124. ^ Icke 1999, p. 52.
  125. ^ Robertson 2016, p. 140.
  126. Jump up to:a b “The Royal Family are bloodsucking alien lizards – David Icke”The Scotsman, 30 January 2006.
  127. Jump up to:a b c Icke 1999, p. 40.
  128. ^ Icke 1999, pp. 61, 52, 43.
  129. ^ Icke 1999, p. 61.
  130. ^ Robertson 2013, p. 35.
  131. ^ Icke 1999, p. 30.
  132. ^ Lewis & Kahn 2010, p. 81.
  133. Jump up to:a b c Robertson 2016, pp. 150–151.
  134. ^ Icke, David; Mitchell, Ben (22 January 2006). “This much I know”The Observer. Guardian News & Media. Retrieved 21 April 2020.
  135. ^ Allington, Daniel; Toube, David (14 November 2018). “Why conspiracy theories are not just a harmless joke”New Statesman. Retrieved 21 April 2020.
  136. ^ Marshall, Michael“David Icke Live: What I Learned From Spending Four Hours With The World’s Most Famous Conspiracy Theorist”Gizmodo – UK. Retrieved 6 November 2018.
  137. ^ Stephen Roth Institute (2002). Antisemitism Worldwide, 2000/1. U of Nebraska Press. pp. 146–. ISBN 978-0-8032-5945-4.
  138. Jump up to:a b Gardner, Mark (5 January 2017). “David Icke’s ages old New Age antisemitism”Community Security Trust. Retrieved 13 April 2020.
  139. ^ Ronson, Jon (6 May 2001). “David Icke, the Lizards, and the Jews”. Channel 4. Event occurs at 00:16:30. Archived from the original on 14 December 2021 – via YouTube.
  140. ^ Barkun 2003, pp. 103–104.
  141. ^ Robertson 2016, p. 152.
  142. ^ Icke, David. Children of the Matrix. p. 339.
  143. ^ Icke, David. Human Race Get off Your Knees. pp. 134, 646.
  144. ^ Kay, Jonathan (2011). Among the Truthers: A Journey Through America’s Growing Conspiracist Underground. HarperCollins. p. 180.
  145. ^ Lewis & Kahn 2010, p. 83.
  146. ^ Seidel, Jamie (18 February 2019). “David Icke: How the world’s greatest conspiracy theorist discovered his personal truth”News.com.au — Australia’s Leading News Site. News Corp. Retrieved 18 February 2019.
  147. Jump up to:a b c Robertson 2016, p. 139.
  148. Jump up to:a b David Icke, “Problem-reaction-solution”News for the Soul, accessed 12 December 2010.
  149. ^ Quote on page two from Drinkwater, Kenneth; Dagnall, Neil; Denovan, Andrew; Parker, Andrew; Clough, Peter (January–March 2018). “Predictors and Associates of Problem-Reaction-Solution: Statistical Bias, Emotion-Based Reasoning, and Belief in the Paranormal”SAGE Open8 (1): 11. doi:10.1177/2158244018762999.: “Although, the precise lineage of PRS [problem–reaction–solution] is unknown, researchers often ascribe the origin of PRS to various ancient figures or events (i.e., Roman Emperor Diocletian) and philosophical doctrines (Hegel, 1812; see Fichte, 1794, in Neuhouser, 1990). In this historical context, PRS comprises three stages equivalent to those subsumed within PRS: thesis (intellectual proposition, problem), antithesis (negation of the proposition, response to thesis), and synthesis (resolution of tension between proposition and reaction, resolution). These steps derive from Heinrich Moritz Chalybäus misinterpretation (Carlson, 2007) of Hegel’s dialectic (Mills, 2005; Stewart, 1996). The exact source and academic status of PRS is unclear and beyond the remit of this article, which generally views PRS as a form of faulty inferential thinking. More precisely, as the tendency to validate proffered suboptimal solutions based on limited evaluation of objective evidence.”
  150. ^ Icke, Human Race Get Off Your Knees: The Lion Sleeps No More.
  151. ^ For 9/11, Icke, Alice in Wonderland and the World Trade Center Disaster.
  152. ^ For global warming and Agenda 21, Icke, Phantom Self, 303.
  153. ^ Widdas, Henry (7 June 2018). “David Icke: My unanswered 9/11 questions”Lancashire Evening Post. Retrieved 19 June 2018.
  154. Jump up to:a b c Robertson 2016, p. 157.
  155. Jump up to:a b Icke, David (2003). Tales from the Time Loop: The Most Comprehensive Expose of the Global Conspiracy Ever Written and All You Need to Know to be Truly Free (First ed.). Bridge of Love. p. 447ISBN 978-0953881048.
  156. ^ David Icke, Human Race Get Off Your Knees: The Lion Sleeps No More, Ryde: David Icke Books, 2010, pp. 618, 627, 632.
  157. ^ O’Brien, Liam (19 May 2013). “Prize-winning author Alice Walker gives support to David Icke on Desert Island Discs”The Independent. Retrieved 19 June 2018.
  158. ^ The Anti-Vaxx Industry, Center for Countering Digital Hate, 2020
  159. Jump up to:a b Kelion, Leo (7 April 2020). “Coronavirus: YouTube tightens rules after David Icke 5G interview”BBC News. Retrieved 7 April 2020.
  160. ^ “Facebook removes David Icke coronavirus-5G conspiracy video”ITV News. 9 April 2020. Retrieved 4 May 2020.
  161. ^ Field, Mark (13 April 2020). “How Britain’s telecoms firms are reacting to the surge in coronavirus conspiracies”The Daily Telegraph. Retrieved 25 April 2020.
  162. ^ Cohen, Nick (25 April 2020). “Social media no longer tolerates toxic lies? Don’t believe a word of it”The Observer. Retrieved 25 April 2020.
  163. ^ “The Coronavirus Conspiracy: How COVID-19 Will Seize Your Rights & Destroy Our Economy”London Real. 6 April 2020. Event occurs at 1:18:05. Retrieved 26 April 2020.
  164. ^ “Ofcom ‘urgently’ probes Icke TV interview on virus”BBC News. 9 April 2020. Retrieved 10 April 2020.
  165. ^ Harpin, Lee (12 April 2020). “London Live condemned for allowing David Icke to air ‘lunatic conspiracy theories’”The Jewish Chronicle. Retrieved 21 April 2020.
  166. ^ Harpin, Lee (20 April 2020). “Ofcom sanctions London Live for broadcasting David Icke interview about coronavirus”The Jewish Chronicle. Retrieved 20 April 2020.
  167. ^ Dearden, Lizzie (1 May 2020). “Coronavirus: Conspiracy theorist David Icke’s Facebook page deleted as pressure mounts on social media companies”The Independent. Retrieved 1 May 2020.
  168. ^ “Coronavirus: David Icke kicked off Facebook”BBC News. 1 May 2020. Retrieved 9 January 2021.
  169. ^ “Coronavirus: David Icke’s channel deleted by YouTube”BBC News. 2 May 2020. Retrieved 2 May 2020.
  170. ^ Drury, Colin (30 August 2020). “Anti-lockdown, anti-vaccine and anti-mask protesters crowd London’s Trafalgar Square”The Independent. Retrieved 3 September 2020.
  171. Jump up to:a b “Conspiracy theorist David Icke cheered by thousands at anti-lockdown demo”The Jewish Chronicle. 30 August 2020.
  172. ^ “Twitter bans David Icke over Covid misinformation”BBC News. 4 November 2020. Retrieved 4 November 2020.
  173. ^ “Twitter permanently suspends conspiracy theorist David Icke’s account”The Guardian. PA Media. 4 November 2020. Retrieved 4 November 2020.
  174. ^ “Desert Island Discs: Alice Walker”. BBC Radio 4. 19 May 2013.
  175. ^ Hoyles, Ben; Moore, Matthew (22 December 2018). “Yikes! David Icke on march again after Pulitzer writer Alice Walker’s praise”The Times. Retrieved 24 December 2018.
  176. ^ Lynskey, Dorian. “Psycho lizards from Saturn: The godlike genius of David Icke!”New Statesman. NS Media Group. Retrieved 19 April 2020.
  177. ^ Sawyer, Miranda. “Brand on the run”The Observer. Guardian News & Media. Retrieved 19 April 2020.
  178. ^ “7 musicians who are fascinated by conspiracy theories”BBC. BBC. 16 April 2018. Retrieved 19 April 2020.
  179. ^ Battaglia, Debbora (2005). E.T. culture: anthropology in outerspaces. Duke University Press. ISBN 978-0-8223-3632-7.
  180. ^ Alter, Alexandra (21 December 2018). “Alice Walker, Answering Backlash, Praises Anti-Semitic Author as ‘Brave’”The New York Times. Retrieved 14 April 2020.
  181. ^ Ronson, Jon (17 March 2001). “Beset by Lizards”The Guardian. Retrieved 6 November 2018.
  182. ^ “Antisemite David Icke Being Allowed to Speak at City-Owned Theater in Vancouver for Ten Hours”The Algemeiner. 5 September 2017. Retrieved 23 April 2020.
  183. ^ Golan, Ori (13 July 2016). “Don’t waste your money to see conspiracy theorist David Icke”The Sydney Morning Herald. Retrieved 4 May 2020.
  184. Jump up to:a b “From Green Messiah to New Age Nazi”Institute for Social Ecology. January 1996. Retrieved 18 August 2018.
  185. ^ Charles, Ron (24 September 2019). “A hateful, conspiracy-filled book just got harder to buy. That’s no cause for celebration”The Washington Post. Retrieved 13 April 2020.
  186. ^ Kraft, Frances (7 October 1999). “New Age speaker set to talk in Toronto”The Canadian Jewish News. Archived from the original on 1 March 2007.
  187. ^ Cowley, Jason (1 October 2000). “The Icke Files”The Independent on Sunday. Archived from the original on 6 November 2012.
  188. ^ Jackson, Jamie (17 November 2017). “Manchester United cancel David Icke show at Old Trafford after backlash”The Guardian. Retrieved 11 June 2018.
  189. ^ Gindin, Matthew (8 September 2017). “Anti-Semitic Conspiracy Theorist David Icke Gives Talk in Vancouver”The Canadian Jewish News. Retrieved 6 November 2018.
  190. ^ Jaffe-Hoffman, Maayan (21 February 2019). “Aussi Government Bans Man Who Said Jews ‘Bankrolled’ Hitler”The Jerusalem Post. Retrieved 28 February 2019.
  191. Jump up to:a b Doran, Matthew (20 February 2019). “Holocaust denier who believes alien lizards rule the world banned from entering Australia”ABC News. Australia. Retrieved 20 February 2019.
  192. ^ Koziol, Michael (20 February 2019). “Government bans conspiracy theorist David Icke ahead of planned Australian tour”The Sydney Morning Herald. Retrieved 7 July 2020.
  193. ^ Karp, Paul (20 February 2019). “Conspiracy theorist David Icke hits back after Australia revokes visa”The Guardian. Retrieved 13 April 2020.
  194. ^ “Rainbow Ark magazine”Center for Media and Democracy. Retrieved 18 August 2018.
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WunderWaffen

One alleged site of production of the Nazi UFOs is a series of tunnels buried under the Jonas Valley in Thuringia, central Germany. Here, under the command of SS General Hans Kammler, legions of slave labourers worked to bring the Fuhrer’s fantasies into existence.

The respected German science magazine has reported how “advanced” the programme was as scientists toiled in secret factories to produce the “wonder weapon” to win the war. The magazine quotes eyewitnesses who saw a flying saucer marked with  the German Iron Cross flying low over the Thames in 1944. “America also treated the existence of the weapons seriously,” it said.

Research done in Third Reich archives points to a secret factory in the Jonas Valley complex. Now officially sealed off, authorities play a cat-and-mouse game with UFO hunters. Why else would the Americans take away everything they found and place the results under a 100-year secrecy order?

The US believed Germany could use it to drop weapons on New York — a target the Fuhrer obsessed on as the war progressed. At the time the New York Times reported on a “mysterious flying disc” with photos of the device seen travelling at extremely high speeds over the city’s high-rise buildings.

“Apparently that machine was capable on its maiden flight of travelling
2,000km,” added the PM report. “The Germans had destroyed much of the
paperwork of their activities but there are numerous hints that it did
indeed exist.”

The Nazi UFO project was driven by engineers Rudolf Schriever and Otto Habermohl and was based in Prague between 1941 and 1943. Initially a Luftwaffe project, it eventually fell under the control of armaments minister Albert Speer before being taken over once again in 1944 by Hans Kammler.  Eyewitnesses captured by Allies after the war claimed to have seen the saucer fly on several occasions. Joseph Andreas Epp, an engineer who served as a consultant to the Schriever-Habermohl project, claimed 15 prototypes were built. He described how a central cockpit surrounded by rotating adjustable wing-vanes formed a circle. The vanes were held together by a band at the outer edge and were set in rotation by small rockets placed around the rim. Once rotational speed was sufficient and lift-off was achieved, horizontal jets or rockets were ignited.

A German official recorded that at the Prague-Gbell aerodrome in September 1943, he saw inside a hangar “a disk 5-6 metres in diameter. Its body is relatively large at the centre. “Underneath it has four tall, thin legs. Colour: aluminum. Height: almost as tall as a man. Thickness: some 30 to 40cm. Along with my friends, I saw the device emerge from the hangar. “It was then we heard the roar of the engines, we saw the external side of the disk begin to rotate and the vehicle began moving slowly and in a straight line toward the southern end of the field. “It then rose almost one metre into the air. After moving around some 300 metres at that altitude, it stopped again. Its landing was rather rough. Later, the ‘thing’ took off again, managing to reach the end of the aerodrome this time.”

German engineer Georg Klein claimed that two types of flying disks had been created by the Nazi scientists. Georg Klein, who went on to have a distinguished postwar career as an aeronautical engineer, said : “I don’t consider myself a crackpot, or eccentric, or fantasy prone person. This is what I saw with my own eyes — a Nazi UFO.”

Dr. Eduard Ludwig,  Chile, South America :  

  1. https://quantumantigravity.files.wordpress.com/2018/08/nazi-ufo_1.pdf
  2. https://quantumantigravity.files.wordpress.com/2018/08/nazi-ufo_2.pdf

Hat Schwerkraft Zukunft ?  
   
Is Gravity The Future ?   

In his “The Hunt for Zero Point“ Nick Cook describes the discovery of “the greatest mystery since the invention of the atomic bomb”. The author, an aviation specialist in the leading military magazine Jane’s Defense Weekly, reveals that American researchers are not only working on revolutionary antigravation techniques, but have already deciphered the secret of the gravity. Only the sensational discovery, which fundamentally changed both transport and weapon technology, had been kept secret for years.

Cook, too, first learns of it through mysterious circumstances. One day he stumbles over a quotation from armor expert George S. Trimble, vice president of the “G project” at Martin Aircrafts. Trimble claimed as early as 1956 that the taming of gravity could be achieved “about the same time as was necessary to build the atomic bomb.” What was he playing with?

There would be, for example, those Nazi scholars who, in the service of the SS, explored the possibility of antigravity and time travel. What became of the head of these armament projects, SS Obergruppenführer Hans Kammler?

Many clues suggest that SS Obergruppenführer Hans Kammler escaped to the United States with his findings and made them available to the US military.

It is quite conceivable that in the late fifties, somewhere in the expanse of the American prairie, a secret research laboratory was set up, which, like the Manhattan project, aimed at mastering the power of the atomic bomb.

Had this effort been successful? Is the anti-gravity technology perhaps already in use? In his researches in the laboratories of the armaments industry, in the corridors of the Pentagon, and in the tunnels of former Nazi research centers, this suspicion is confirmed by Cook. Although he is unable to provide any firm proof, the journalist discovers something else in his research: the feeling of a great mystery, “a black heart”. Cook can properly “feel the fear that clings to it”.

And yet the shielding is not complete. Even the attentive observer of scientific literature could not escape the fact that our schoolbook knowledge stands before a revolution.

Astronomers have been observing for a number of years that the universe is expanding much faster than previously thought – a finding many people explain by the action of a kind of cosmic antigravity that drives the galaxies apart. The astronomers emphasize again and again that this force has no influence on earthly masses and only becomes effective at great cosmological distances. But who knows?

The so-called zero-point energy of the vacuum also stimulates wild speculation. According to quantum mechanics, nothingness is not empty, but full potential. Just wonder how big this zero point energy (ZPE) is. “Some say that there is enough energy in a shoe box to allow the whole world to explode,” says Cook’s book, “others think that you can not even boil an egg with the whole ZPE of the world.”

Do Podkletnov know more? In 1992, the Russian emigrant reported that he had discovered a method for shielding gravity at the Tampere Technical University in Finland. For this purpose, Podkletnov had a disk of a special superconducting material rotated over a strong magnetic field. At over 5000 revolutions per second, measurements with a super fine scale, lost samples suspended above the disc up to one percent of their weight!

Although the professional world is still skeptical about these results, the American physicist Ning Li soon waited for a theoretical explanation: the rotating superconductor had a “gravito-magnetic” effect, a phenomenon which Einstein had already predicted. Similar to a moving electric charge, a magnetic field is generated, according to the theory of relativity, rotating matter must also influence the gravitational field. Although the effect according to Einsteinstheorie should be so small that it would be detectable only in the universe. Ning Li could not convince Nasa to repeat Podkletnov’s groundbreaking experiments.

The fact that these attempts failed for many years and Ning Li does not want to comment on the whole subject any more, can only be explained by the power of the “black heart” that Nick Cook could guess in his research.

Yevgeny Podkletnov also felt his strength. The anti-gravity pioneer lost his job at the Tampere Technical University and has to pursue his research on his own. He recently revealed to a reporter of the New Scientist that he had now developed a “pulse generator”, which could throw down an upright book at a distance of one kilometer. Unfortunately, a visit to the facility is not possible because it is located in a security zone of the Moscow University. In addition, he is obliged to “silence” for “patent reasons”.

But the progress can not be stopped. This is also known by the Nasa researchers, who work in the “Breakthrough in Drive Technology” department. In the meantime, they have realized that Podkletnov’s experiment apparently only works when the rotating superconducting disk has a very specific chemical composition – and the Russian physicist has so far kept this mixture secret. But for a generous check, he has now betrayed his special recipe to an American company, who had an exact copy of his antigravation apparatus made for Nasa for 600,000 dollars. These days, the Marshall Space Flight Center in Huntsville, Alabama, is about to begin the experiments, and it is only a matter of months before the official confirmation of Podkletnov’s breakthrough discovery is made.

Only the scientific community still struggles against the impending paradigm shift. The physicist and book author Hans Christian von Baeyer, who teaches in the USA, considers the antigravitation to be as likely as “the possibility that your office is exploding today”. Even Lawrence M. Krauss, who analyzed the physics of Star Trek and is a science fiction expert, considers NASA’s work as an “nonsense”. As chairman of a corresponding NASA advisory board, he would at any rate do his utmost to “end this stupid project”.

Is there only the arrogance of the mainstream physics establishment behind such statements? Or are they merely distraction maneuvers to conceal the truth of that “dark mystery” that Nick Cook has tracked?

Ulrich Schnabe

Chapter  ONE

The photocopied pages had obviously come from some long-forgotten schlock popular science journal. I had stepped away from my desk only for a few moments and somehow in the interim the article had appeared. The headline ran :The G-Engines Are Coming.  

I glanced around the office, wondering who had put it there and if this was someone’s idea of a joke. The copier had cut off the top of the first page and the title of the publication with it, but it was the drawing above the headline that was the giveaway. It depicted an aircraft, if you could call it that, hovering a few feet above a dry lake bed, a ladder extending from the fuselage and a crew member making his way down the steps dressed in a U.S.-style flight suit and flying helmet—standard garb for that era. The aircraft had no wings and no visible means of propulsion.

I gave the office another quick scan. The magazine’s operations were set on the first floor. The whole building was open-plan. To my left, the business editor was head-down over a proof-page checking copy. To her right was the naval editor, a guy who was good for a windup, but who was currently deep into a phone conversation and looked like he had been for hours.

I was reminded of a technology piece I’d penned a couple of years earlier about the search for scientific breakthroughs in U.S. aerospace and defense research. In a journal not noted for its exploration of the fringes of paranormality, nor for its humor, I’d inserted a tongue-in-cheek reference to gravity—or rather to antigravity, a subject beloved of science-fiction writers.

“For some U.S. aerospace engineers,” I’d said, “an antigravity propulsion system remains the ultimate quantum leap in aircraft design.” The implication was that antigravity was the aerospace equivalent of the holy grail: something longed for, dreamed about, but beyond reach—and likely always to remain so.

Somehow the reference had escaped the sub-editors and, as a result, amongst my peers, other aerospace and defense writers on the circuit, I’d taken some flak for it. For Jane’s, the publishing empire founded on one man’s obsession with the detailed specifications of ships and aircraft almost a century earlier, technology wasn’t something you joked about.

The magazine I wrote—and still write—for, Jane’s Defence Weekly, documented the day-to-day dealings of the multibillion-dollar defense business. JDW, as we called it, is but one of a portfolio of products detailing the ins and outs of the global aerospace and defense industry. If you want to know about the thrust-to-weight ratio of a Chinese combat aircraft engine or the pulse repetition frequency of a particular radar system, somewhere in the Jane’s portfolio of products there is a publication that has the answers. In short, Jane’s was, and always has been, about facts. Its motto is: Authoritative, Accurate, Impartial.

It was a huge commercial intelligence-gathering operation; and provided they had the money, anyone could buy into its vast knowledge base.

I cast a glance at the bank of sub-editors’ work-stations over in the far corner of the office, but nobody appeared remotely interested in what was happening at my desk. If the subs had nothing to do with it, and usually they were the first to know about a piece of piss-taking that was going down in the office, I figured whoever had put it there was from one of the dozens of other departments in the building and on a different floor. Perhaps my anonymous benefactor had felt embarrassed about passing it on to me?

I studied the piece again.

The strapline below the headline proclaimed: “By far the most potent source of energy is gravity. Using it as power, future aircraft will attain the speed of light.” It was written by one Michael Gladych and began: “Nuclear-powered aircraft are yet to be built, but there are research projects already under way that will make the super-planes obsolete before they are test-flown. For in the United States and Canada, research centers, scientists, designers and engineers are perfecting a way to control gravity—a force infinitely more powerful than the mighty atom. The result of their labors will be antigravity engines working without fuel—weightless airliners and space ships able to travel at 170,000 miles per second.”

On any other day, that would have been the moment I’d have consigned it for recycling. But something in the following paragraph caught my eye.

The gravity research, it said, had been supported by the Glenn L. Martin Aircraft Company, Bell Aircraft, Lear “and several other American aircraft manufacturers who would not spend millions of dollars on science fiction.” It quoted Lawrence D. Bell, the founder of the plane-maker that was first to beat the sound barrier. “We’re already working on nuclear fuels and equipment to cancel out gravity.” George S. Trimble, head of Advanced Programs and “Vice President in charge of the G-Project at Martin Aircraft,” added that the conquest of gravity “could be done in about the time it took to build the first atom bomb.”

A little further on, it quoted “William P. Lear, the chairman of Lear Inc., makers of autopilots and other electronic controls.” It would be another decade before Bill Lear went on to design and build the first of the sleek business jets that still carry his name. But in 1956, according to Gladych, Lear had his mind on other things.

“All matter within the ship would be influenced by the ship’s gravitation only,” Lear apparently said of the wondrous G-craft. “This way, no matter how fast you accelerated or changed course, your body would not feel it any more than it now feels the tremendous speed and acceleration of the earth.” The G-ship, Gladych explained, could take off like a cannon shell, come to a stop with equal abruptness and the passengers wouldn’t even need seat belts. This ability to accelerate rapidly, the author continued, would make it ideal as a space vehicle capable of acceleration to a speed approaching that of light.

There were some oblique references to Einstein, some highly dubious “facts” about the nature of subatomic physics and some speculation about how various kinds of “antigravity engines” might work.

But the one thing I kept returning to were those quotes. Had Gladych made them up or had Lawrence Bell, George S. Trimble and William “Bill” Lear really said what he had quoted them as saying?

Outside, the rain beat against the double-glazed windows, drowning the sound of the traffic that crawled along the London to Brighton road and the unrelenting hum of the air conditioning that regulated the temperature inside.

The office was located in the last suburb of the Greater London metropolis; next stop the congested joys of the M25 ring road and the M23 to Gatwick Airport. The building was a vast redbrick two-story bunker amid between-the-wars gray brickwork and pebbledash. The rain acted like a muslin filter, washing out what little ambient color Coulsdon possessed. In the rain, it was easy to imagine that nothing much had changed here for decades.

As aviation editor of JDW, my beat was global and it was pretty much unstructured. If I needed to cover the latest air-to-surface weapons developments in the U.S.A., I could do it, with relatively few questions asked. My editor, an old pro, with a history as long as your arm in publishing, gave each of us, the so-called “specialists” (the aviation, naval and land systems editors), plenty of rope. His only proviso was that we filed our expenses within two of weeks of travel and that we gave him good, exclusive stories. If I wanted to cover an aerospace and defense exhibition in Moscow, Singapore or Dubai, the funds to do so were almost always there.

As for the job itself, it was a mixture of hard-edged reporting and basic provision of information. We reported on the defense industry, but we were part of it, too—the vast majority of the company’s revenue coming from the same people we wrote about. Kowtowing was a no-no, but so was kicking down doors. If you knew the rules and played by them you could access almost any part of the global defense-industrial complex. In the course of a decade, I’d visited secret Russian defense facilities and ultrasensitive U.S. government labs. If you liked technology, a bit of skulduggery and people, it was a career made in heaven. At least 60 percent of the time I was on the road. The bit I liked least was office downtime.

Again, I looked around for signs that I was being set up. Then, satisfied that I wasn’t, but feeling self-conscious nonetheless, I tucked the Gladych article into a drawer and got on with the business of the day. Another aerospace and defense company had fallen prey to post-Cold War economics. It was 24 hours before the paper closed for press and the news editor was yelling for copy.

Two days later, in a much quieter moment, I visited the Jane’s library. It was empty but for the librarian, a nice man way past retirement age who used to listen to the BBC’s radio lunchtime news while gazing out over the building’s bleak rear lot.

In the days before the Internet revolution, the library was an invaluable resource. Fred T. Jane published his first yearbook, Jane’s Fighting Ships, in 1898; and in 1909 the second, Jane’s All The World’s Aircraft, quickly built on the reputation of the former as a reference work par excellence for any and all information on aeronautical developments. Nigh on a century later, the library held just about every book and magazine ever put out by the company and a pile of other reference works besides.

I scanned the shelves till I found what I was looking for.

The Jane’s All The World’s Aircraft yearbook for 1956 carried no mention of antigravity experiments, nor did successive volumes, but that came as no great surprise. The yearbooks are the aerospace equivalent of Burke’s Peerage or the Guinness Book of Records: every word pored over, analyzed and double-checked for accuracy. They’d have given antigravity a very wide berth.

For a story like this, what I was looking for was a news publication.

I looked along the shelves again. Jane’s had gotten into the magazine publishing business relatively recently and the company’s copies of Flight International and Aviation Week ran back only a few years. But it did have bound volumes of Interavia Aerospace Review from before the Second World War. And it was on page 373 in the May 1956 edition of this well-respected publication, in amongst advertisements for Constellation airliners, chunky-looking bits of radar equipment and (curiously for an aviation journal) huge “portable” Olivetti typewriters, that I found a feature bylined: Mr. “Intel”, Washington, D.C., with the headline: “Towards Flight without Stress or Strain…or Weight” Beneath it ran the strapline: The following article is by an American journalist who has long taken a keen interest in questions of theoretical physics and has been recommended to the Editors as having close connections with scientific circles in the United States. The subject is one of immediate interest and Interavia Aerospace Review would welcome further comment from initiated sources. — Editors.

The article referred to something called “electro-gravitics” research, whose aim was to “seek the source of gravity and its control.” This research, “Intel” stated, had “reached a stage where profound implications for the entire human race are beginning to emerge.”

I read on, amused by the tone and wondering how on earth the article had come to be accepted in a mainstream aerospace journal.

“In the still short life of the turbojet airplane [by then, 1956, little more than a decade], man has had to increase power in the form of brute thrust some twenty times in order to achieve just twice the speed. The cost in money in reaching this point has been prodigious. The cost in highly specialized man-hours is even greater. By his present methods man actually fights in direct combat the forces that resist his efforts. In conquering gravity he would be putting one of his most competent adversaries to work for him. Antigravitics is the method of the picklock rather than the sledgehammer.”

Not only that, the article stated, but antigravity could be put to work in other fields beyond aerospace. “In road cars, trains and boats the headaches of transmission of power from the engine to wheels or propellers would simply cease to exist. Construction of bridges and big buildings would be greatly simplified by temporary induced weightlessness etc. Other facets of work now under way indicate the possi- bility of close controls over the growth of plant life; new therapeutic techniques, permanent fuelless heating units for homes and industrial establishments; new sources of industrial power; new manufacturing techniques; a whole field of new chemistry. The list is endless …and growing.”

It was also sheer fantasy.

Yet, for the second time in a week I had found an article—this time certainly in a publication with a solid reputation—that stated that U.S. aerospace companies were engaged in the study of this “science.” It cited the same firms mentioned by Gladych and some new ones as well: Sperry-Rand and General Electric among them. Within these institutions, we were supposed to believe, people were working on theories that could not only make materials weightless, but could actually give them “negative weight”—a repulsive force that would allow them to loft away “contra-gravitationally.” The article went further. It claimed that in experimentation conducted by a certain “Townsend T. Brown” weights of some materials had already been cut by as much as 30 percent by “energizing” them and that model “disc airfoils” utilizing this technology had been run in a wind tunnel under a charge of a hundred and fifty kilovolts “with results so impressive as to be highly classified.”

I gazed out over the slate rooftops. For Interavia to have written about antigravity, there had to have been something in it. The trouble was, it was history. My bread-and-butter beat was the aerospace industry of the 1990s, not this distant cozy world of the fifties with its heady whiff of jet-engine spirit and the developing Cold War.

I replaced the volume and returned to my desk. It should have been easy to let go, but it wasn’t. If people of the caliber quoted by Gladych and Interavia had started talking about antigravity anytime in the past ten years I would have reported it—however skeptical I might be on a personal level. Why had these people said the things they had with such conviction? One of them, George S. Trimble, had gone so far as to predict that a breakthrough would occur in around the same time it took to develop the atomic bomb—roughly five years. Yet, it had never happened. And even if the results of “Townsend T. Brown’s” experiments had been “so impressive as to be highly classified,” they had clearly come to naught; otherwise, by the 60s or 70s the industry would have been overtaken by fuel-less propulsion technology.

I rang a public relations contact at Lockheed Martin, the U.S. aerospace and defense giant, to see if I could get anything on the individuals Gladych had quoted. I knew that Lawrence Bell and Bill Lear were both dead. But what about George S. Trimble? If Trimble was alive—and it was a long shot, since he would have to be in his 80s—he would undoubtedly confirm what I felt I knew to be true; that he had been heavily misquoted or that antigravity had been the industry’s silly-season story of 1956.

A simple phone call would do the trick.

Daniella “Dani” Abelman was an old media contact within Lockheed Martin’s public affairs organization. Solid, reliable and likable, she’d grown up in the industry alongside me, only on the other side of the divide. Our relationship with the information managers of the aerospace and defense world was as double-edged as the PR/reporter interface in any other industry. Our job was to get the lowdown on the inside track and, more often than not, it was bad news that sold. But unlike our national newspaper counterparts, trade press hacks have to work within the industry, not outside it. This always added an extra twist to our quest for information. The industry comprised hundreds of thousands of people, but despite its size, it was surprisingly intimate and incestuous enough for everyone to know everyone else. If you pissed off a PR manager in one company, even if it was on the other side of the globe, you wouldn’t last long, because word would quickly get around and the flow of information would dry up.

But with Abelman, it was easy. I liked her. We got on. I told her I needed some background on an individual in one of Lockheed Martin’s “heritage” companies, a euphemism for a firm it had long since swallowed whole.

The Glenn L. Martin Company became the Martin Company in 1957. In 1961, it merged with the American-Marietta Company, becoming Martin-Marietta, a huge force in the Cold War U.S. defense electronics industry. In 1994, Martin-Marietta merged again, this time with Lockheed to form Lockheed Martin. The first of the global mega-merged defense behemoths, it built everything from stealth fighters and their guided weapons to space launchers and satellites.

Abelman was naturally suspicious when I told her I needed to trace an ex-company employee, but relaxed when I said that the person I was interested in had been doing his thing more than 40 years ago and was quite likely dead by now.

I was circumspect about the reasons for the approach, knowing full well if I told her the real story, she’d think I’d taken leave of my senses.

But I had a bona fide reason for calling her—and one that legitimately, if at a stretch, involved Trimble: I was preparing a piece on the emergence of the U.S. aerospace industry’s “special projects” facilities in the aftermath of the Cold War.

Most large aerospace and defense companies had a special projects unit; a clandestine adjunct to their main business lines where classified activities could take place. The shining example was the Lockheed Martin “Skunk Works,” a near-legendary aircraft-manufacturing facility on the edge of the California high desert.

For 50 years, the Skunk Works had sifted Lockheed for its most highly skilled engineers, putting them to work on top secret aircraft projects.

Using this approach it had delivered some of the biggest military breakthroughs of the 20th century, among them the world’s first Mach 3 spyplane and stealth, the art of making aircraft “invisible” to radar and other enemy sensor systems.

But now the Skunk Works was coming out of the shadows and, in the process, giving something back to its parent organization. Special projects units were renowned for bringing in complex, high-risk defense programs on time and to cost, a skill that had become highly sought after by the main body of the company in the austere budget environment of the 1990s.

Trimble, I suggested, might be able to provide me with historical context and “color” in an otherwise dry business story. “Advanced Programs,” the outfit he was supposed to have worked for, sounded a lot like Martin’s version of the Skunk Works.

Abelman said she’d see what she could do, but I wasn’t to expect any short-order miracles. She wasn’t the company historian, she said dryly, but she’d make a few inquiries and get back to me.

I was surprised when she phoned me a few hours later. Company records, to her surprise—and mine—said that Trimble was alive and enjoying retirement in Arizona. “Sounds hard as nails, but an amazing guy by all accounts,” she breezed. “He’s kinda mystified why you want to talk to him after all this time, but seems okay with it. Like you said, it’s historical, right?”

“Right,” I said.

I asked Abelman, while she was at it, for all the background she had on the man. History or not, I said, trying to keep it light, I liked to be thorough. She was professional enough to sound less than convinced by my newfound interest in the past, but promised she’d do her best. I thanked her, then hung up, feeling happy that I’d done something about it. A few weeks, a month at the outside, the mystery would be resolved and I could go back to my regular beat, case closed.

Outside, another bank of gray storm clouds was rolling in above rooftops that were still slick from the last passing shower.

I picked up my coat and headed for the train station, knowing that somewhere between the office and my flat in central London I was going to get soaked right through.

The initial information came a week later from a search through some old files that I’d buried in a collection of boxes in my basement: a company history of Martin Marietta I’d barely remembered I’d acquired. It told me that in 1955 Trimble had become involved in something called the Research Institute for Advanced Studies, RIAS, a Martin spin-off organization whose brief was to “observe the phenomena of nature…to discover fundamental laws…and to evolve new technical concepts for the improvement and welfare of mankind.”

Aside from the philanthropic tone, a couple of things struck me as fishy about the RIAS. First off, its name was as bland as the carefully chosen “Advanced Development Projects”—the official title of the Skunk Works. Second, was the nature and caliber of its recruits. These, according to the company history, were “world-class contributors in mathematics, physics, biology and materials science.”

Soon afterward, I received a package of requested information from Lockheed Martin in the mail. RIAS no longer existed, having been subsumed by other parts of the Lockheed Martin empire. But through an old RIAS history, a brochure published in 1980 to celebrate the organization’s “first 25 years,” I was able to glean a little more about Trimble and the outfit he’d inspired. It described him as “one of the most creative and imaginative people that ever worked for the Company.”

I read on.

From a nucleus of people that in 1955 met in a conference room at the Martin Company’s Middle River plant in Maryland, RIAS soon developed a need for its own space. In 1957, with a staff of about 25 people, it moved to Baltimore City. The initial research program, the brochure said, was focused on NASA and the agency’s stated goal of putting a man on the moon. But that wasn’t until 1961.

One obvious question was, what had RIAS been doing in the interim? Mainly math, by the look of it. Its principal academic was described as an expert in “topology and nonlinear differential equations.”

I hadn’t the least idea what that meant.

In 1957, the outfit moved again, this time to a large mansion on the edge of Baltimore, a place chosen for its “campus-like” atmosphere. Offices were quickly carved from bedrooms and workshops from garages.

It reminded me of accounts I’d read of the shirtsleeves atmosphere of the early days of the Manhattan Project when Oppenheimer and his team of atom scientists had crunched through the physics of the bomb.

And that was the very same analogy Trimble had used. The conquest of gravity, he’d said, would come in the time it took to build the bomb.

I called a few contacts on the science and engineering side of Lockheed Martin, asking them, in a roundabout kind of way, whether there was, or ever had been, any part of the corporation involved in gravity or “counter-gravitational” research. After some initial questions on their part as to why I should be interested, which I just about managed to palm off, the answer that came back was a uniform “no.” Well, almost. There was a guy, Boyd Bushman, one contact told me, a scientist who worked in the combat aircraft division in Fort Worth who would talk eloquently about the mysteries of Nature and the universe to anyone who would listen. He’d also levitate paper clips on his desk. Great character, but a bit of a maverick. “Paper clips?” I’d asked. “A maverick scientist levitating paper clips on his desk? At Lockheed Martin? Come on.”  My source laughed. If he hadn’t known better, he’d have said I was working up a story on antigravity.  A 1999 FBI memo established that Boyd Bushman was indeed employed at Lockheed Martin (LM). The man’s claims of holding Top Secret clearance while working as a Senior Specialist were also verified. Please note, however, LM expressed concerns to the FBI of what “may be an ongoing attempt to elicit LM proprietary or classified information” surrounding Bushman:

I made my excuses and signed off. It was crazy, possibly dangerous stuff, but it continued to have me intrigued.

I called an old friend who’d gained a degree in applied mathematics. Tentatively, I asked whether topology and non-differential linear equations had any application to the study of gravity.

Of course, he replied. Topology—the study of shape in physics—and nonlinear equations were the standard methods for calculating gravitational attraction.

I sat back and pieced together what I had. It didn’t amount to much, but did it amount to something?

In 1957, George S. Trimble, one of the leading aerospace engineers in the U.S. at that time, a man, it could safely be said, with a background in highly advanced concepts and classified activity, had put together what looked like a special projects team; one with a curious task.

This, just a year after he started talking about the Golden Age of Antigravity that would sweep through the industry starting in the 1960s.

So, what went wrong?

In its current literature, the stuff pumped out in press releases all the time, the U.S. Air Force constantly talked up the “vision”: where it was going to be in 25 years, how it was going to wage and win future wars and how technology was key.

In 1956, it would have been as curious as I was about the notion of a fuel-less propulsion source, one that could deliver phenomenal performance gains over a jet; perhaps including the ability to accelerate rapidly, to pull hairpin turns without crushing the pilot and to achieve speeds that defied the imagination. In short, it would have given them something that resembled a UFO.

I rubbed my eyes. The dim pool of light that had illuminated the Lockheed-supplied material on Trimble and RIAS had brought on a nagging pain in the back of my head.

The evidence was suggesting that in the mid-50s there had been some kind of breakthrough in the antigravity field and for a small window in time people had talked about it freely and openly, believing they were witnessing the dawn of a new era, one that would benefit the whole of mankind.
Then, in 1957, everyone had stopped talking about it. Had the military woken up to what was happening, bringing the clamps down?

Those in the know, outfits like Trimble’s that had been at the forefront of the breakthrough, would probably have continued their research, assembling their development teams behind closed doors, ready for the day they could build real hardware.

But of course, it never happened.

It never happened because soon after Trimble, Bell and Lear made their statements, sanity prevailed. By 1960, it was like the whole episode never took place. Aerospace development continued along its structured, ordered pathway and antigravity became one of those taboo subjects that people like me never, ever talked about.

Satisified that everything was back in its place and as it should be, I went to bed.

Somewhere in my head I was still tracking the shrill, faraway sounds of the city when the phone rang. I could tell instantly it was Abelman. Separated by an ocean and five time zones, I heard the catch in her breathing.

” It’s Trimble,” she said. “The guy just got off the phone to me. Remember how he was fine to do the interview? Well, something’s happened. I don’t know who this old man is or what he once was, but he told me in no uncertain terms to get off his case. He doesn’t want to speak to me and he doesn’t want to speak to you, not now, not ever. I don’t mind telling you that he sounded scared and I don’t like to hear old men scared. It makes me scared. I don’t know what you were really working on when you came to me with this, Nick, but let me give you some advice. Stick to what you know about; stick to the damned present. It’s better that way for all of us.”

Towards Flight without Stress or Strain… or Weight

by Mr. “Intel”,  Washington D.C.  

The following article is by an American journalist who has long taken a keen interest in questions of theoretical physics and has been recommended to the Editors as having close connections with scientific circles in the United States. The subject is one of immediate interest and Interavia Aerospace Review would welcome further comment from initiated sources. — Editors.

Washington D.C.,  March 23,  1956  

Electrogravitics research, seeking the source of gravity and its control, has reached a stage where profound implications for the entire human race begin to emerge. Perhaps the most startling and immediate implications of all involve aircraft, guided missiles — atmospheric and free space flight of all kinds.

If only one of several lines of research achieve their goal — and it now seems certain that this must occur — gravitational acceleration as a structural, aerodynamic and medical problem will simply cease to exist. So will the task of providing combustible fuels in massive volume in order to escape the earth’s gravitic pull — now probably the biggest headache facing today’s would-be “space men”.

And towards the long-term progress of mankind and man’s civilization, a whole new concept of electrophysics is being levered out into the light of human knowledge.

There are gravity research projects in every major country of the world. A few are over 30 years old. Most are much newer. Some are purely theoretical and seek the answer in Quantum, Relativity and Unified Field Theory mathematics — Institute for Advanced Study at Princeton, New Jersey; University of Indiana’s School of Advanced Mathematical Studies; Purdue University Research Foundation; Goettingen and Hamburg Universities in France, Italy, Japan and elsewhere. The list, in fact, runs into the hundreds.

Some projects are mostly empirical, studying gravitic isotopes, electrical phenomena and the statistics of mass. Others combine both approaches in the study of matter in its super-cooled, super-conductive state, of jet electron streams, peculiar magnetic effects or the electrical mechanics of the atom’s shell. Some of the companies involved in this phase include Lear Inc., Gluhareff Helicopter and Airplane Corp., The Glenn L. Martin Co., Sperry-Rand Corp., Bell Aircraft, Clarke Electronics Laboratories, the U.S. General Electric Company.

The concept of weightlessness in conventional materials which are normally heavy, like steel, aluminium, barium, etc., is difficult enough, but some theories, so far borne out empirically in the laboratory, postulate that not only can they be made weightless, but they can in fact be given a negative weight. That is: the force of gravity will be repulsive to them and they will — new sciences breed new words and meanings for old ones — loft away contra-gravitationally.

In this particular line of research, the weights of some materials have already been cut as much as 30% by “energizing” them. Security prevents disclosure of what precisely is meant by “energizing” or in which country this work is under way.

The American scientist Townsend T. Brown has been working on the problems of electrogravitics for more than thirty years. He is seen here demonstrating one of his laboratory instruments, a disc-shaped variant of the two-plate condenser.
A localized gravitic field used as a ponderamotive force has been created in the laboratory. Disc airfoils two feet in diameter and incorporating a variation of the simple two-plate electrical condenser charged with fifty kilovolts and a total continuous energy input of fifty watts have achieved a speed of seventeen feet per second in a circular air course twenty feet in diameter. More lately these discs have been increased in diameter to three feet and run in a fifty-foot diameter air course under a charge of a hundred and fifty kilovolts with results so impressive as to be highly classified. Variations of this work done under a vacuum have produced much greater efficiencies that can only described as startling. Work is now under way developing a flame-jet generator to supply power up to fifteen million volts.

Such a force raised exponentially to levels capable of pushing man-carrying vehicles through the air — or outer space — at ultrahigh speeds is now the object of concerted effort in several countries. Once achieved it will eliminate most of the structural difficulties now encountered in the construction of high-speed aircraft. Importantly the gravitic field that provides the basic propulsive force simultaneously reacts on all matter within that field’s influence. The force is not a physical one acting initially at a specific point in the vehicle that needs then to be translated to all the other parts. It is an electrogravitic field acting on all parts simultaneously.

Subject only to the so-far immutable laws of momentum, the vehicle would be able to change direction, accelerate to thousands of miles per hour, or stop. Changes in direction and speed of flight would be effected by merely altering the intensity, polarity and direction of the charge.

Man now uses the sledge-hammer approach to high-altitude high-speed flight. In the still-short life-span of the turbo-jet airplane he has had to increase power in the form of brute thrust some twenty times in order to achieve just a little more than twice the speed of the original jet plane. The cost in money in reaching this point has been prodigious. The cost in highly-specialized man-hours is even greater. By his present methods man actually fights in direct combat the forces that resist his efforts. in conquering gravity he would be putting one of his most competent adversaries to work for him. Anti-gravitics is the method of the picklock rather than the sledge-hammer.

The communications possibilities of electrogravitics, as the new science is called, confound the imagination. There are apparently in the ether an entirely new unsuspected family of electrical waves similar to electromagnetic radio waves in basic concept.

Electrogravitic waves have been created and transmitted through concentric layers of the most efficient kinds of electromagnetic and electrostatic shielding without any apparent loss of power in any way. There is evidence, but not yet proof, that these waves are not limited by the speed of light. Thus the new science seems to strike at the very foundations of Einsteinian Relativity Theory.

But rather than invalidating current basic concepts such as Relativity, the new knowledge of gravity will probably expand their scope, ramification and general usefulness. It is this expansion of knowledge into the unknown that more emphasizes how little we do know; how vast is the area still awaiting research and discovery.

The most successful line of the electrogravitics research so far reported is that carried on by Townsend. T. Brown, an American who has been researching gravity for over thirty years. He is now conducting research projects in the U.S. and on the Continent. He postulates that there is between electricity and gravity a relationship parallel and/or similar to that which exists between electricity and magnetism. And as the coil is the usable link in the case of electromagnetics, so is the condenser that link in the case of electrogravitics. Years of successful empirical work have lent a great deal of credence to this hypothesis.

Dear  Robert, 

If Nazis had antigravity saucers, which is very possible, 
due to simplicity of old physics involved, 
what crashed  in Roswell was an American replica.  

Check out Annie Jacobsen.  Interestingly, she claims 
that what crashed in Roswell, was a Russian antigravity saucer,
and the small bodies were NOT Aliens : 

An Editorial!

Steve Erdmann’s Dissenter/Disinter Group Editorial Comments

“Warning” to those who join the Dissenter/Disinter Group: Facebook’s new algorithm automatically ‘subtracts’ members rather than add them correctly! It was not like this a few months ago. This has been reported to Facebook numerous times, without result! An accounting has been started today of all members added to the Dissenter/Disinter Group to document their miscreant functioning. I ask ‘you’ computer programming and mathematician experts out there: what kind of accounting is Facebook using and how would you address this problem? Please help me investigate this and make complaints. A Facebook Help Desk comment on Google says they are “scrubbing-out” non-active Group members: Who and why are they making those indiscriminate decisions (they don’t do that with Friends on Timelines): sounds more like censorship, that would actually be a private matter between Administrators and the members, and not done arbitrarily and against their will (why even try to get members if they’re going to be knifed in the back (or, solicit new members to a Group)?

*******
SE – Once again, we try to explain (as we have done in the past several times) our general approach to news, the media, politics. Here is a reproduction of private comments in a reply to one of my critics:

“We like some of your ideas, facts, and thoughts, and we welcome them – if presented within reason and decor. This is what we don’t like and try to avoid: Stephen Erdmann: We promote very few human endeavors in an absolute sense, Russian or otherwise, as all fail and all fall within the scope of the loop of human evil and frailty. We look for those foes that all humankind seems to be battling from ‘any’ corner they are hunkered in.

“This Group is not a ‘platform’ for one single person’s private opinions or ‘sermons.’ It is a ‘forum’ whereby ‘all’ have an opportunity to add to the ongoing investigation. Hopefully, most will participate and not just become ‘observers.’ Likewise, this Group will not become monopolized by the thinking and propaganda of just one individual – this was not its purpose.

“We are not affiliated with the KKK or any other political faction said that many times, over and over, as well as has explained why we present all sides of news and media questions, without censorship, if possible. We are against the Military/Industrial/Corporate/Complex/Matrix (MICCM) and all its ‘isms,’ ‘cants,’ ‘crats,’ ‘cans,’ and  ‘doms.’ All it takes to see this and prove it, is to use your mouse or enter scroll and have a strong browser and investigate back to 2011. We refuse to become any one person’s private, personal pulpit (that is why you have your own Timeline). We allow most to speak their minds continually here — even to the point of opulently and often stuporous ferociousness — over and over — but apparently that is not good enough for a few. It takes a strong mind and will to live under the 1st Amendment and really abide by it.

“When I say ‘we,’ I usually mean ‘me’ – though I am speaking editorially on behalf of all those members who follow and agree with the Preamble religiously — they get the idea and message — and are giving me their full support.

“All the twisting, stretching, and manipulating of my stated words and intended feelings will not help these matters, and being completely uncompromising, unreasonable and deliberately uncouth certainly won’t help either.

“Please, read my text and postings in their full context and their entirety, if possible, to adjust to the real story and picture I present. Don’t settle for ‘half-baked’ interpretations or careless understanding.

“When any one person begins to use these spaces as solely his or her private podium to demonized (and shout down or otherwise badger) all other voices, he will be informed and given a mandate to cease and desist. This is a ‘forum’ Group and that connotes some fairness and inspection and equipoise of one’s behavior: we hope that each member will reflect on their behavior and not allow it to become effluvium.”

(This does not mean we will allow boring, tiring, inaccurate propaganda about the alleged Israel-cabal of so-called Zionism, which in many cases is far too short-sighted when it concerns the worldwide Military-Industrial-Corporate-Complex-Matrix (MICCM). Well documented pieces on ‘how’ Zionism is part and parcel of the “overall” MICCM, might be tolerated; but, singling out propaganda trying to prove Hitler was virtuous and the killing of the Jewish population as justified, will not be tolerated.

We do not automatically share anti-Semitic views and do not state everyone should or does. In fact, those that appear to be promoted from a Hate standpoint usually won’t coexist on this Group. This Group does not endorse, knowingly, anti-Semitic propaganda per se and any Hate Speech that is the basis for it.)

We are here to promote ‘news’ from all different angles and sources, it is not my or anyone else’s purpose to knowingly or even unknowingly ‘prejudge’ the news, unless it becomes so apparent it is false there is no other alternative. But getting to that point can be a rocky and wearisome struggle. We have no prejudice about exposing ‘multiple’ viewpoints, because we realize that reality is multi-sided, often multidimensional, complicated and not always easily discernible: so we present many sides of that struggle. If you read my editorial comments, you should see that I have no particular stake in the sordid political fights and feel such political ‘gamesmanship’ is illusory and almost impossible. Some people feel that such deception is beyond their party, club or faction. You may feel yours is Holy, as well. I doubt that sanctimoniousness. Only the strong-minded need to tread here. That closed-mindedness of “my viewpoint only” needs to be “taken down.”

It won’t help to distance yourself from exercising your 1st Amendment Rights or having a scientifically critical viewpoint of the way life really is. Being Cheshire Cats or Mad Hatters, neither, or the way humans use delusion to cover the crimes of fellow humans down through the centuries. They now call Hollywood La-La Land for a reason. We all want to be ‘happy,” or try to be, and relish the moments that can be described as such—who wouldn’t?— but the age-old conflicts that are weighing down on so many in society, like maimed soldiers with PTSD — can’t foolishly ignore the conflicts.

A lot of people don’t want to fall into the greedy hands and the vicious, heartbreaking, devastating grip of the Legal Cabal and lawyers who eagerly waiting your downfall and falter into the henchmen hands and courtroom manipulations of distorting reality and controlling your life in as much pain and anguish and loss as possible. You have to example the alternatives, but when confronted, especially with prior knowledge, it might be best to look to each other rather than the Powerbrokers and the Big Brothers. Unfortunately, many are just babes in the woods and don’t know yet what is about to befall them.

It’s all about the money and how the Legal Cabal can control the situation; children are used as hostages for ransom, the court room their playground to reconstruct reality: Orwell’s ‘1984’ further realized, and you will, like Winston, if they have their way, “come to love Big Brother.”

It’s all part of a political ‘game’ that they develop in the courtroom to recreate a ‘reality’ that is used against you (much like the political world in George Orwell’s ‘1984’), been saying that for some time now; and the bigger “gunslinger” and ‘stick-carrier’ more or less wins. Not much different then olden medieval jousts or Roman gladiator fights.

There is a big difference between a source that publishes outright invented news, and a source—or sources—that you just “don’t like,” or says things that are philosophically different than your views or opinions. Things said on the Left spectrum and the Right Spectrum may annoy us, but they have the Constitutional Right to speak and be heard by willing listeners (you can always turn a deaf ear to the opinion). Myself, I think both sides of the “aisle” are filled with evil intentions and hogwash, but that shouldn’t prevent me printing interesting ‘tidbits,’ unless I decide one day to go completely “off the grid.”

Political terms, names and meanings have evolved, changed, and transformed over the years as many other concepts that have also transmogrified. Some “liberal” concepts once seemed to uphold “freedom,” ‘free speech’ and protected ‘human rights’: now have turned into a ‘power-based’ ‘force’ to change society, even if by ‘radical’ or ‘militant’ means. Some blatantly attack those idealistic overtures the Founding Fathers alluded to (some hiding behind those precepts but being actually treacherous to them). Conservatives tried to parade themselves as preserving the principals that were expounded underlying the Founding Fathers up to and through the Bill of Rights, have much, in the same way, become the lair of the wealthy and ultra-rich which want to control the masses, preserve their power and wealth, and hide behind a disguise of being the protectors of the Rights of Mankind, when they are only another power-based ‘force’ for control and greed using the slavery to the masses. They have far surpassed the British overlords the colonialists fought. All of these have become Monsters.

(I know from experience that security guards are nothing but Whipping Boys, a ‘buffer’ between the Security Guard company, the police and the Landowner (they have three (3) bosses). They are the ‘Fall guys,’ if anything goes wrong, it is their job to take the heat, to not make the Landlords or the company to look bad (nor the police, who often treat them as low, second-class citizens and nothing more). They are given a whole list of phony ‘rules’ to make them robots to ‘slice the heat’ and put on a good ‘public face’ (often at low or very moderate wages), sometimes in very dangerous and life-threatening situations. It is Crony Capitalism at its worst; most guards will not admit this for fear of losing their jobs. They could really tell you some stories: but it would expose the ‘system.’ They are allowed to do what they have to do in order to ‘protect’ this ‘status quo and system.’ I am quite sure this goes beyond the Security Guard profession, and the same mentality exists in most businesses and professions, one way or the other.)

Yes, we have covered this phenomena every now and then since 2011. I’ve been through the Divorce Racket (and other rackets) over the years and have tried to speak out in various formats and scenarios; it all follows a common thread. It makes one wonder why we are fighting each other, rather than the ‘common enemy.’ That enemy is hard to see and I’ve done what I can to expose it and make it visible. These pages are open to fellow dissidents and ‘explorers’ and ‘exposers.’ You’re welcome to tell your stories here and add to the exposition. It is all part of a megalith monster I call the Military-Industrial-Corporate-Complex- Matrix (MICCM).

Those that have been through an unwanted divorce, and even a wanted one, to some degree, are aware of the trauma, nervous fatigue, and other psychological damage done—along with other life incidents—resulting in a form of PTSD. I would be the last one to tell someone how to live, as there are too many factors. Avoid elitist nay-sayers who are usually the cause of the problem that you are in, as they are usually narcissists. There is an ‘upside’ to these battles, and it is usually found within you somehow and can be reinforced by fellow victims, possibly.

Concerning a separate and special Right for Women Manifesto: Don’t know why it has to be signature by “women” as these are basic Human Rights for all mankind, male or female, which, unfortunately many women, in their symbiotic and parasitic alliance with the Legal Industry Cabal, causes them to tarnish and violate those basic Rights for both Men and Women. See how far these Rights go without falling into the trap (as they have already been) of being used or overtaken by the MICCM and other Legal Industry Masterminds which only serve their own Power, Profit and Prestige.

You are seeing the dark crevices of the Legal Cabal and its influence over humans. It is not a female/male thing, necessarily, but an allowance of human perversity personified by the workings of the Legal Industry. You are experiencing the gun-ho workings of the system on individuals, as many men have experienced, but the system forces on everyone for profit and power. It is as old as “slavery.”

“Outspoken” should pertain to those who are proven to be true heroes opposing physical and psychological dangers, as opposed to brats and punks, calling themselves adults, trashing, and destroying others for very vain and greedy purposes.

It is equally infuriating to be unnecessarily misquoted and misunderstood, when an opponent or debater is just flouting his ingrained and innate propaganda brainwashed into him from birth and is making no attempt to truly analyze and comprehend what you are telling them. Sometimes, their minds are so closed, they just ignore anything you say or do. Instead of approaching the arguments from “in your shoes,” they continue to be the little robots our society has invented and further spiel the usual venom and grade-school invectiveness in which they have ‘not’ tried to unlearn.

I am at a point in my life that I want to undo the evils that I forgot or refused to fight against in my life, and give others a choice to do the same, before it is too late, utilizing my 1st Amendment Rights and no longer turning a blind eye to the fates of the world. To teach others to ‘think’ and discover and use their mind, not to become simple sheep and blind slaves to those who control their reality: Take off their masks, those little deceiving priests!

People get stuck in very old ideologies, concepts and “isms” and refuse to move out of those ‘boxes.’ We always like to think that we are the ones that are wearing the ‘white hats,’ and are the ‘only’ ones that know how to wear them and, even, the only ones that know where to ‘buy’ them: when they are just grey, smudged, soiled and fraying old hats that have been passed around for generations through many, many secret hands.

“Some kind” of compromise and “understanding” is always needed when these debates appear and try to look at “root” problems and not bring up too many private situations; and even then, always be willing to compromise and see each other’s point-of-view. Other than that, as I have said many times previously, the terms “fascist, liberal, left, right” are thrown around too loosely and with no historical meaning, always being projected from each person’s “private boxes.”

We shouldn’t condemn ‘socialism’ any more than ‘conservatism’: both are aimless, meaningless terms that don’t reflect the hidden agendas they are used for: fascist control and imperial elitism, the real enemy. At least ‘socialism’ had a true and genuine use in history well before America came into being and the bastardization of political terms. Most “political sensations” are nothing but masks to hide our inner evils and to gang together and destroy each other rather than help each other. A lot of national patriotism is the same baby-gook. We tend to fall for false histories, rather than the real histories: take off your masks little priests! Stop living in a world of ancient slogans and worn-out propaganda created by deceptive brain controllers and illusory political ideals.

Putting your full faith behind any one political party or personage is like trying to find virtue in a whorehouse: there are no such animals. Tyrannical and fascistic thinking are par for the course in any arena of life: it is the way humanoids operate. Ideologies are things only on ‘paper’: the real world should circumnavigate those illusory dreams and get down to the true facts; take off your masks, little priests.

I am the real oddball: and I have been sick and tired of the masking and erroneous parading of the so-called “Political Parties” for some time; watching the circus of flying monkeys never changes, even when one monkey is somewhat likable and seems to be alien to all the rest, it never changes. Still, we forge ahead and root and rant like the Romans at the Coliseum.

‘Pure’ Capitalism has never existed, nothing politically and socially has ever existed as ‘pure.’ It is easy to write something on paper and claim it is pristine and infallible, but quite another to see it operate in cold, stark reality. So-called Americanism as Capitalism was corrupted right out of the gate (i.e., see past postings and comments elsewhere). It is nice to write idealistic doctrine, but quite another thing to see it corrupted, inadequate, and having no fail-safe due to the monstrosity of the human condition. I know all about the dictionary definition but applying it to real human accomplishments is a pipedream, daydream, fable that has never really existed in all practically. I ‘sure as hell’ see proof of that every day.

So-called “Capitalism” has had its problems too, part of which redesigning what is a theory on ‘paper’ and inventing it according to our own evil images, in the form of Crony Capitalism, Fascism, etc., etc. Like so much in life, there never has been “pure” Capitalism (like there have never been ‘pure’ heroes, or ‘pure’ religion, or ‘pure’ politics) because any such “ism” is run by nefarious and weak and inhumane “humans.” We have a classical bent to destroy, pervert and warp the things about us. It is just one of many fairy tales and play-toys that humans like to toss around and manipulate. Looking for this Holy Grail (like looking for the Golden Fleece) is ‘fun’ and can be used to bolster our usual Id Monsters (to take a metaphor from the movie FORBIDDEN PLANET), but it is in no way ‘reality.’

Capitalism is a cheap term used on paper only, a fairy-tale used by mega-Monsters to wave in the face of others and hide behind their own magnanimous quests to control and prosper—it is a concept on paper, an ideology, that does not truly represent what is actually being done in reality. Crude Crony Mercantilism as a guise to hide under a fictitious Capitalism might be another way to describe it, but no matter what term you use, it has never really existed, any more than “pure” Communism, “pure” Christianity, or other “pure” ‘isms’ which we use to mask the real person or the real institution as it should be nakedly exposed for what it “is” and for what is really being done in all their corrupt and inglorious actions. Being a Monster in any fashion, no matter, how wealthy or powerful, does not justify its existence, Might does not Make Right, as history blatantly shows, and the defense of such corruption and any extension or characteristic of it only shows the evil it is and continues to become. Thank you Dorian Gray.

Fighting each other instead of the common enemy: what a waste! Some members are correct when they say America has strong fascist elements, but America is “not” the ‘only’ place that this evil does and can take root. We are overemphasizing the wrong places, time and things! Why is it that vampires can’t see themselves in the mirror?

It would appear that “enslavement” — or slavery — is a universal, ingrained mechanism of human nature — a very cruel and often contradictory facet of humans: which we can see today as it is incorporated, mechanized and used in our Modern World; and it is aimed at and applied “to all humans” (except for those who try to rule and use enslavement).

The vile vindictiveness that the public is confronted with by many judges in the legal system goes beyond the words “fair and equal justice,” where the lives of citizens become mere playthings in the Westworld-type of robotic recreation on the floors of the courthouse. The worldwide multi-billion-dollar Legal Industry has permeated every fiber of our lives and directed our realities to the dictates of this despotic Puppet-Master. Ask any divorce man or domestic court victim, they will attest that a man has only five (5) foes when he enters the system: his lawyer, her lawyer, the judge, her innate sexuality and the status quo.

Many live in their little “isms” they were raised in from birth and do not look beyond or question who are the core sponsors (do you have a mirror; can you look in a mirror?). They do not realize how intricately they are crafted and brainwashed. They are robotized goose-stepping zombies, and there is no changing. The MICCM has trained them well.

No concept or leaf is left alone by the MICCM: it is part of evil human nature, even so-called national pride or patriotism. Look down through history and see how often humans have used these for evil and destructive purposes.

The human being is love-challenged and intelligence-challenged and has proved themselves as such down through history. The humans believe that owning tons of money makes them superior to their fellow creatures and creating millions of enslaved and blindly devoted employees makes themselves even better rulers and elitists. It has always been that way, on the micro and macro levels; they also abhor psychological mirrors and will even kill to the death if their empires are challenged, taking millions of fellow humans to their death. They “group” in mutual ‘clubs’ as a way to protect and even ‘mask’ their true natures.

Reality is shifting beneath your very own feet: what we have been taught about the righteousness of the Left or Right, Democrats or Republicans, this ‘wing,’ or that ‘wing,’ and we do not reflect the innate and basic social realities that are taking place before our own eyes. In my years since July 27, 1944, based on my experience and the questions I have asked, and my eyes have seen, we have been deluded over and over, from the day we were born. See my past comments. When confronting attorneys in private and putting hard questions to them, often in confidence, many have said there is no real freedom, anywhere, in any party — that they are in control and they hold allegiance to no one but their Bar Association cabal. Right out of Orwell’s 1984, but only worse and complete. This: because all “isms” are under the evil rule of the “Humans.” Humans that glorify every evil act they do as good and pure: it won’t change, and we won’t challenge it unless we see the real “enemy.” We will continue to form “clubs” (social and physical) — and expound those clubs — with power and greed and evil to be used as ‘clubs’ against each other — until this final Truth becomes too evident to deny.

These lawyers have opened a Pandora’s box. In my meetings with attorneys, they have shown hardened, darkened commitment to fascistic, despotic rule by corporate giants and big business, in stark, no-uncertain-terms—those terms are evident in the elements of its manufacture, such as Fire-At-Will laws and the disrespect of Human Rights.

An editor from the Wall Street Journal hit the nail right on the head: it is all about money. You pay enough so your lawyer can split a little off for the other lawyer and the judge, and after paying a small fortune, you get some of what you want. It is all a recreated reality done in the court room to the tune of the dollar bill. It is sad, that is true, but this is the way humans operate. Sometimes, however, one lawyer just does not want to look bad to the other lawyer, or the judge, and will sell you out just to keep in tight with the Club. The Legal Cabal is very much a part of the MICCM and controls our reality, it’s a “‘Big Club,’ and you are not in it!” (Carlin). I mentioned one time to an editor of the Wall Street Journal that perhaps a RICO suit should be brought against the Bar Association, and he asked how I would get the money to do that, and that, here again, it is a lawyer suing fellow lawyers; it ain’t going to happen. How can we get over this insurmountable wall? I’ll join in a Foundation to fight lawyers, if others will come with me. Let me know.

Note the synchronistic similarities between corporate “government,” popular “government,” social “government,” corporations as “people,” corporate “government” bribing and sleeping with “popular government,” all mixed in what I call the Military/Industrial/Corporate/Complex/Matrix (MICCM) “Government.”

We don’t understand “government.” We think it is a separate entity, alone and separate from us. Government is the darkest, evilest, macabre parts of our own psyche, and when those elements ‘group’ in the various forms and combinations (such as the MICCM) and materialize, we see the Monster ‘we’ have become. In the science-fiction thriller THE FORBIDDEN PLANET, it was called monsters of the ‘id.’ Until we see the true ‘enemy’—us—we will never, ever come to terms or defeat it.

Part of the problem is our throwing terms around for loose and lop-sided reasons without any real background or roots. These are enormously powerful people in the IMF and the United Nations, they are not a bunch of poor people trying to grub-up a livable wage for themselves. All this talk about entitlements: some of these ‘official’ people are born-and-breed aristocracy; they don’t know what it is like to live in the slums of India, Africa or the lowest of the low. It is a matter of the wealthy controlling the masses, and it is usually the wealthy that profit and the masses that suffer. They spend billions of media-propaganda-dollars guaranteeing that ‘that’ brainwashing is successful so the masses don’t attack them and “keep the lowly in their place.” That is the way it has always been! What is so sad, is when some of these executives, in a “little-bit-than-better-CEO-middle-class-salary,” actually have convinced themselves they are on the “winning side”—yes, they are actually safely on the side of the “elite”—that is ‘their’ team—and yet they don’t realize or are not aware that this is all self-delusion and they are only a few steps away—in actuality—from their very own destruction as outsiders also. It is all part of the programming by the MICCM.

It is exceedingly difficult and painful to suddenly realize that lullabies and fairy stories are things that are used to placate us and even control us, stories put down on paper, while they make us feel good and justified, are usually used by ourselves against ourselves as weapons hurting or obscuring ourselves. But we keep trudging on, programmed to believe that our ‘pipe dreams’ will come true and the scribbling we have made—or were programmed to make–mean something and will fly off the paper into reality. We can always pretend and hope.

(An aside: We have a ban on personal and unreasonable attacks on each other, or any other excuse one would try to come up with. If some are allowed to attack private family and friends, then any one is allowed to.

Attacks on one’s personal parents, children, or relatives are not allowed for whatever reason one can imagine. No posting or site or Group justifies hitting below the belt: if your arguments are good, they will not sink this low. That is not just espousing another opinion: instead, that is vicious attack.

We welcome all civil comments. We are running into, now and then, more and more, the questionable muck that is so often displayed across the Internet that ‘free speech’ is confused with slander, personal attacks and just being downright nasty and unkind for no other reason. We are happy to see you are not one of them.)

(I am not so sure the Reich disappeared but was transformed into the Fourth Reich, and the transformation and partnerships went further and further: the constant transmogrifications and transformations with partners sleeping in same bed. All the “isms” have blended into sub-Rosa deals: you are dealing with one huge Industrial/Military/Corporate/Complex/Matrix [MICCM]. The Party system is a mask, as are so many other masks. “Take off your mask, little priest,” says murderer Errol Childress to detective Rustin Spence in TRUE DETECTIVE, a mask we all wear and deny. ######################################## 
“He’s saying to take off the mask of his persona. They both know that the whole concept of being a ‘person’ is an illusion, and that everything just repeats over and over again, that good and evil will always exist, and yet Rust continues to fight the ‘good’ fight, because that’s simply his role. He is aware that it is futile, and yet continues this masquerade nonetheless. Errol is telling him to take off his mask and reveal his ‘true’ self; that the darkness is really within him. That this is all just a play, created by himself. A dream that he had within a locked room. And the only way to reveal this truth is in death.” ################### https://www.quora.com/True-Detective-Season-1-Episode-8-Why…

 ##### Lindsey Krumhar.) #########https://www.youtube.com/watch?v=CIdB8LX4pGs

.)

It is sad if we still have to use the terms Liberal and Right as human qualifiers, as if it is a baseball sport, instead of just looking at the people as humans and just look at the facts: without all the banner- “my side versus your side” – waving. Slogans are masks to hide the evil, take off your masks little priests.

How in the world do the readers/members equate “non-coercion” with capitalism, when capitalistic countries have far more than a share of human torment and inhumanity? The fact is: there are no ‘pure’ systems of human relations that are devoid of evil and human mistreatment, be that capitalism or other. A lot of corruption happens in this system, and others, that can’t be gainsaid or explained away with fluffy, pie-in-the-sky make-believe. We need to take off our masks!

I think there is far more fear of the wealthy right-wing tyranny taking over America than the poor, underprivileged underclass swarming the Elite-ruling class. This fear of the “reds” coming to get our money was instilled in the 30-50’s to fight Communism by Intelligence operations in America. You are stuck in an era that was not all-together true. I don’t think presenting you with other evidence will do much good, if you are not willing to move out from behind that propaganda.

Having no great love for the current Parties, or any “ism,” does not mean I cannot pick out those bits and pieces and statements of logic that seem – seem – to point to good directions. It doesn’t mean I am giving “WHOLEHEARTED” endorsement of any Party or organization: just respecting some things that they occasionally say that are reasonable. History – true history – exists as bits and pieces in a large jigsaw puzzle; it is up to us to locate and assemble those pieces in honest efforts.

This should be an independent look at facts and issues, not “wings”: this is not a Kentucky-Fried restaurant. And this so-called “Right wing”—that must be a spicy part of the bird—or are they just Muppets dressed in white robes and gold halos floating around with their all-powerful wands and gimmicks?

This Group is not a hodgepodge of confused (nor a melting pot of all kinds of), aimless political quips and slander: do not come here to just “get something off your chest” – speak with purpose, clarity, and humanity and reason: childish tantrums belong in the alley. We need some new, innovative, investigation and reasoning: not the same old, worn-out, repetitive, ageless tantrums about Left versus Right. If we cannot change – we are lost.

Members are always welcome to state their detailed reasons for disagreement, but usually none are forthcoming. We encourage members to post their own analysis and other areas of news, no matter how disconcerting; but, apparently, most just rather be by-standing critics that have little to say of value.

If you want further specifics other than what is said here: you need to help locate those persons and names and pin down their actual substance and actions: nothing is being handed on a silver-platter, and we ask all to add further names and specific items; you are welcome to do that. Readers are welcome to speak up and demonstrate their findings, rather than vaguely complain. Sometimes, specific and detailed questions bring forth specific and detailed answers, bad questions, bad answers.

I don’t necessarily believe Putin or “anybody”: I try to present a lot of interesting comments and facts with not so much an unduly “prejudgment” so as to get opinions from all sides, rather than censor from some hidden or inner sanctum crap-pot of judgmental facts; and then I sometimes let the chips fall where they may.

(Please read and follow the Preamble, it is there for a reason. While we abhor censorship, but we do have rules: this is not a “let it all hang out” assembly with wild and ravishing comments. Use reason and purpose and humanity.

For all those out there who occasionally complain about the choice of content [and I am fighting the heavy-hand of the 1st Amendment and no censorship as well]: please submit – submit content that you would like to see, be active to this extent, and not just bystanders and curbside spectators.)

We welcome all the stories of tragedy in the lives of people who have encountered the Power Cabal. Most people are unaware of the day-to-day destruction of the family and other ‘taboo’ topics because the Powers-That-Be are not predicated upon its disclosure and they rather hide the cold, stark and naked facts: it would expose their true, evil intentions. Your stories can be told here.

Sadly, corporate enterprises, such as FACEBOOK, are trending to follow in the insanity of despotic corporatism, viewing their use of robots and censorship and Kangaroo Courts: It doesn’t make it right, known as Might Makes It Right syndrome. People have always fought back against this type of tyranny—and always will—unless they are Brain Washed or become corporate lackeys or henchmen. Here is one better: ultimately, your reality is controlled by lawyers and the Bar Associations in a Grand Cabal—what do you do, just give up the spirit and allow them total, complete control? As time goes on, and the technological tools advance and the wealth of the elites also grow, so do the means and tactics of the Power Elites, advancing in tow — step by step, to your demise.

That’s foolish! Obviously, Facebook doesn’t say: “you must agree to pointless censorship and reckless use of rules and unreasonable and dark, unanswerable human treatment and censorship”; they allege to act in a fair and reasonable manner and answerable to common decency and humanity. It is the least that American society expects. True, no one is reasonable and especially those in power, and only corporate lackeys and those of dark, like-minded mentally would agree with it anyway. Some of us have been mistaken, but it is not the first time, and, in our goodwill and generosity, we make false assumptions all the time—–it still does not make it right, but only to the like-minded.

We dance around some of the “core” problems and dress our dance in all kinds of (getting to be) “worn out” slogans, chants, and aimless threats, some very inaccurate, often, pretending to be on the “right side” of history — as the ground is shifting beneath our feet and the very reality of things is and has changed drastically in the matrix before our very eyes. More to come.

Good that you aren’t “complying,” that is not like you Ron Schmidt, because it seems to be Facebook’s “official” policy to allow this junk to happen often; religion, corporatism, and a whole host of tyrannical and power-derived ‘isms’ — even ‘capitalism’ — operate basically the same: fear, control, subjugation, etc. It is the way humans work and have been operating for eons. But Ron doesn’t really believe this “system” of humans can be evil and maybe, just maybe, we signed on to their Terms of Service (TOS) when we bought into this mass deception, and since we “bought in” to this grand Status Quo, we should have no complaint (Sovereign Immunity, “Don’t Question the King,” Boss, Dictator, President, etc., etc.), complaining won’t get you to the Top (investigating the system, the boss, etc.), only compliance will so sell your soul to the TOS, you hoe. Besides, it doesn’t really matter said an EEOC lawyer: they can make the rules, break the rules, apply them incoherent any way they like (and from the looks of the dirty politics going on nationally and internationally, that is obvious)! You just have to live with it!

Robert Glenn: True, men and affairs are like peas in the pod, on down the line. They carry that pistol and then are told not to use it. But here is the irony of those situations, unless they are gay: they are doing it with “females.” It takes two to have sex, unless you are into riding the pony by yourself. But sadly, we are also told these “females” are forever innocent, victims, forced into sex by evil-overbearing-seductive males. I’ve met many females when I was single: not at all innocent, dumb, uncreative, brainless sex partners. In fact, I recall being seduced five or six times. Some, I even turned down (to my chagrin and even threats). But that was all my fault too for not allowing seduction. A guy just can’t ‘win,’ and to emphasize the point the Legal Cabal Pimps will see that you get the point and learn that lesson in the back-alley called the court system. Have a nice day?

You corporate lackey! We know all about the propaganda of corporatism! We’ve heard the slogans and the doctrines and the weird terms of corporations as ‘people,’ and how they have so much Power and can get away with murder and inventing and corralling laws and the making and breaking of laws. And you are right ‘in’ there! We see it— and so do many others — quite differently — crony capitalism — phony capitalism — whatever term you feel happy and comfortable about. Nobody in their right mind willingly sells their soul to the devil (except you!). We’ve been over this — with you — and other numbskulls — and we know from where and how you are coming. You probably feel just fine and dandy with the bullshit Facebook has been promoting, and some more that kind, or the other antics that corporate social media is using. You have all the answers but not the soul of America, and its ugly, dark, corporate underbelly. You are right at home (but not here) and probably could care less.

Stephen Erdmann Ron Schmidt (April 9, 2018) Hey Ron, corporations are different than citizen houses and families. There is a dichotomy and a hierarchy involved that is apparently over your head, but it can involve crimes, and if any ‘person’ commits a crime (and corporations are ‘persons’ now) he pays penalties and infractions, and from the looks of things, corporations are not devoid of that and even further looking shows they have many legal suits and case files against them. If they can do no wrong, why is this all taking place? Apparently, what corporations want, and what ‘reality’ is doing and seeing are two different things. There are many other fine distinctions happening, but they are well over any corporate lackey’s head as most of those have their heads stuck so far up the respective corporate butts, they can’t see the light of day! It has been called by many different names, white collar crime, and monopolization, money laundering, on and on and on.

Trump has a specific personality his own, entirely, how can it be any different; do you want him to ‘pretend’ to be a person that he really isn’t, and what might that be? Listen, this Group, site, and profile, as well as many others on Facebook and the Internet say they are for originality, free-thought, free speech, free actions, and then when a President of the U.S. says he is his own person and unique, you slam him. It is okay for ‘you’ to be that way and not a President? If he does something dastardly, it will be exposed, but this wild and constant minute-to-minute character assassination (in the land of the Free, innocent until proven guilty) that appears nothing but a propaganda machine; and dirty politics isn’t any good either, at all. And who might and has been accusing us freethinkers on Facebook of being “unbalanced” as it goes with the territory.

Male and female have that innate animal urge to destroy their neighbors. Animals do it out of necessity to survive. Humans do it out of that unidentifiable element in the deep part of their spirit that must be evil, to be satiated, and quenched, for no other purpose than to gain control, Power, and conquest for pleasure. Both men and women have this ID Monster element; though females have evolved to perform an ‘added’ psychological mechanism and gimmick that males have not evolved into, giving them an added ‘edge’ of attack and destruction. My MiiMii and Dexter, even my outdoor Blackie, do not do these things, because they are civilized animals, not monstrous humans. It is interesting to note, one instance when I was a Security Guard at a bank, I could listen in on the conversations of the female bank tellers, and they had gotten into an unrehearsed, completely free conversation amongst themselves about females and how destructive they were in their actions and the games they play. True history and life, unveiled and unprompted, can be a powerful life-lesson.

Stephen Erdmann: June 12, 2018:  Sadly, trying to find honest and reputable “politicians” is like trying to find a sinless prostitute in a whorehouse, or trying to find the best apple in a barrel of really rotten apples, or….it just is not possible. My Timeline, and the Dissenter/Disinter Group, and my Editorial Comments there, make it very clear: Partisan Politics (in fact, all ‘isms’ and ‘ologies’) is a zero-sum game which reveals only the masquerade that humans operate behind and mask themselves (only paper-tigers, bound up with phony White Hats, pretty ribbons, and decorative paper) — in short, these games of political ‘tag’ are worthless, history is always written by the winners and also distorted by the participants to cover all and subvert all the full facts. Of course, not everyone agrees with me, and most blindly march forward waving the banner of their ‘club,’ ‘group,’ ‘religion,’ etc., etc., blind to the obvious fact that humans do more historical damage to fact-finding than constructive help because of the continuous ‘masquerades.’ One reason we need the 1st Amendment and more impartial fact-finding historians (if such can even possibly exist). Until then, misplaced hero-worship and self-aggrandized ‘ologies’ will forever continue to distort the picture, perhaps without hope.

Some Groups are quite paranoid and hyperventilated, suspecting all people and persons to some curious agenda they ‘have’ or suspect others of having. The JFK groups are mostly like that, being a landscape of suspicion, unreasonable debate, slander, attack and wild accusations. That doesn’t say much for fair and sane investigation, tending to be grade-schoolers and parochially petty. I tend to shy away from such radical and wild climates, not doing science or any one any good: Mostly private “in” Groups, if you are friends of friends of friends, or know same or even if you associate with the wrong people they dislike (not the basis for good journalistic enquiry). Good luck.

But I repeat myself.

(We go back to 2011, for genuine researchers and not just spectators, so use a powerful browser and go searching. Good luck.)

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Dissenter/Disinter Magazine goes back to 1967 when I gave birth to a little fanzine that seemed to be my contribution to the media flavor of that time: the Viet Nam war, the aftermath of the Kennedy assassination, the late Jim Moseley’s Saucer News, Ray Palmer’s provoking Search Magazine and Hidden World series, as well as a line of “controversy” radio programs such as Long John Nebel, Suspense, Yours Truly, Johnny Dollar, with television shows such as Science Fiction Theater and Twilight Zone. In St. Louis in the 60s there was WIL “Steve Clark” controversy radio. There was a section of the media that was renaissance to the investigating of the more curious and often sinister elements at that time, and it gave birth to me and others that have continued in that vein to this day (many will include Coast to Coast radio and Alex Jones and others to this list). We still try to contribute to the emblem of “controversy and protest” as a way of getting to the truth.

Subsequently, in the years following, my life embodied further “discovery” of these “realities” of the mysterious Powers-that-Be (which were quite depressing and decorated with flight-or-fight syndromes), and my waking hours were consumed with survival and making “ends meet” (as with so many of the population, I did not have the luxury of always devoting myself to media publishing or even schooling). That story may or may not be left to my memoirs (and my Timeline), if at all.

We try not to “conform” to predispose or status quo “images” that people have in their heads or were born with. We approach all topics from different viewpoints and suggestions, because we realize solutions are never black and white (I hail back to H.G. Wells, Jules Verne, George Orwell, Charles Fort (http://www.experienceproject.com/

…/Protest-The-Use-…/2923915), Info Journal, and a host of New Age and Protest scientists [study my Timeline]). We offer a forum for discussion, within reason. Questions are always open. I, personally, am ‘independent’ politically, neither bowing to the Left or Right, and neither do I encourage others to bow to them either (or any “ism”). It is a matter of finding out who the tyrants are and how much you relinquish to being a slave. Others may participate from their own level of evaluation, that is their right; but I cannot “endorse” everyone’s politics or religion. We offer a platform to search these things out (in a civil and humane fashion: see Preamble) through questioning and debate. How do you see applying censorship in Groups and Timelines? Use it every time something grinds against your personal opinion? And what about the next person? And the next person? Seems that our Founding Fathers grappled with these questions as well. It is amazing with all the common threads of agreement that ‘can’ be found in fighting tyrannical government and evil conspiracies, we are tearing each other apart, for some reason, over petty feuds and personality squabbles that detract from common core efforts (those little nuggets of gold that make us all as one in protest). We (we are speaking editorially) hope we are able to stand in a “common core” against Tyranny and the evils that are associated with it.

In the end, we are all brothers and sisters.

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And, yes, I tend to be an activist: A political activist is someone who is involved in the political process for the sake of promoting, impeding or raising awareness of a certain issue or set of issues. Political activism typically involves engagement beyond just voting, whether it be through protest, demonstration or lecture.

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PRIVACY Warning: Steve Erdmann:
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Due to the fact that Facebook has chosen to involve software that will allow the theft of my personal information, I do declare the following: on this day, September 28, 2016, in response to the new Facebook guidelines and under articles L.111, 112 and 113 of the code of intellectual property, I declare that my rights are attached to all my personal data, drawings, paintings, photos, texts etc… published on my profile. For commercial use of the foregoing my written consent is required at all times.
Those reading this text can copy it and paste it on their Facebook wall. This will allow them to place themselves under the protection of copyright. By this release, I tell Facebook that it is strictly forbidden to disclose, copy, distribute, broadcast, or to take any other action against me on the basis of this profile and/or its contents. The actions mentioned above apply equally to employees, students, agents and/or other staff under the direction of Facebook.
The contents of my profile include private information. The violation of my privacy is punished by the law (UCC 1 1-308 – 308 1 -103 and the Rome Statute). Facebook is now an open capital entity. All members are invited to post a notice of this kind, or if you prefer, you can copy and paste this version. If you have not published this statement at least once, you will tacitly allow the use of elements such as your photos as well as the information contained in your profile update.https://www.facebook.com/groups/171577496293504/ ##https://www.facebook.com/stephen.erdmann1.

NOTE: Many  members and  readers say this is worthless and of no legal value. I borrowed it from another Group. Worth a try. SE.

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May 21, 2018.  About 3:50 p.m. Greg Ross I’ve shot better than you. Your fat ass easy target

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May 23, 2018: Comment on Travis Smith:  Stephen Erdmann –  Nationalism is a fiction created by ‘insiders,’ and like the doctrines of religions, despite their pompous-sounding slogans and professed emblems, usually has gone astray, and even covered evils of the professors that use them. The Founding fathers professed noble causes and principles, but they also had a ‘dark side,’ some of them, and many say they ‘really’ did not break away from the British Commonwealth and Throne. In the name of “goodness,” in the name of “Nationalism,” most countries wage war and so-called ‘defense’ against other countries. Some horrendous crimes are hidden under those banners. What if it is all a joke, a hoax, a deception, and ‘this’ is the way that the human “being,” animal, operates, suffocated by and paying homage to their inner ID Monsters?

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Stephen Erdmann” June 17, 2018. A general comment not directed at anyone in particular: We just don’t reproduce what each person might consider brand-spanking-undisclosed-news items never-seen-before that might titillate their subjective fancies, we achieve and denote and collect interesting tidbits that might be of general interest, usually very up-to-date and of interest. If you want the fantasy that strikes your innermost wishes, start your own library, we don’t cater to just one person.

Stephen Erdmann: June 19, 2018: Need to tell you the story of Walter Lembeck, one of the smartest savvy CEO’s that was married to a judge’s daughter, who turned on him, causing him to lose his children in a custody battle, and the ‘system’ and the judge brought down the whole cabal to protect the judge’s daughter. Walter only put up with that for so long: he studied night and day in the Law Library (and studied court sessions), and became a very ‘intimating’ pro se lawyer and expert, and began winning many filings he made and eventually won his children back and made his ‘ex’ pay some costs—but it didn’t end there. No, the story didn’t end there, unfortunately, and the full force of the cabal was brought against him, his losing property, jobs, and his children once again. Walter borrowed about 300,000 to 600,000 dollars from his mother to file and fight to the local Supreme Court all the way to the national Supreme Court; which they refused to hear his case. Destitute and defeated, he did the only thing he could do to save himself from destruction—he eventually remarried his ex-wife, and last I heard was back in good (?) graces and remarried to his ex-wife: What kind of ending would you call that? We need to talk to Walter, if he is still living, to find out. Life is scary and strange.

Steve Erdmann to Anna Benjamins, June 22, 2018:  Anna, as you probably know by now, several weeks ago, the UFO Digest Magazine was hit by hackers. Since the tech company is in Canada, it is difficult for RM to get readily in touch with them to work on the problem. His last message to me was that “he needed to get in touch with Dirk’s wife about the company but haven’t heard back from her.” Please contact him and help him in any way possible, it is imperative that we get the magazine back in operation. Please keep in touch about this and contact RM as well.

Stephen Erdmann: June 22, 2018:  The noble ideas that the Founding Fathers enveloped in the Bill of Rights were universal and sanctioned for all people, everywhere in as much as the Fathers were very aware of urban life, and not just rural lives, around the globe, big cities, complex governments—they were aware of these things also as they pondered and wrote the Bill of Rights. They were often educated lawyers from Britain and other places of higher education. It really wasn’t framed by rural people at all. Those who want to tamper with these noble and holistic ideas are fools that are rather tyrannical in their primitive thinking to destroy and reconstruct with as much damage and power as they can get.

Stephen Erdmann: June 23, 2018: This is a growing problem across the broad scope of the media everywhere. It is happening to Facebook, YouTube, and the Internet in general—which has been invented and control by the government from the beginning. People don’t realize how controlled their lives are across the span of living, and from birth. It is the way that despots and tyrants operated from time immemorial. We need a spiritual and universal awakening. Every day, another victim is added to the list, and occasionally, they wake up to the tyranny and slavery when it hits them personally, but not enough or often. Contact me and my Foundation to fight back: independenterdmann@gmail.com or locate me at http://wordpresscom507.wordpress.com or Facebook (if they allow it and don’t censor it). We are under attack!

Stephen Erdmann: June 23, 2018: What should have been plain to most citizens long ago, but apparently not, neither party nor partisan politics are void of and free from tyrannical thinking and the enslavement of the “controllers.” They all want to wear the “White Hat,” when in reality, all hats are smudged, dark, dirty, greasy ‘hats.’ Apparently, everyone is lacking ‘mirrors’ in their homes and domains! The illusion of “my gang versus your gang, and my gang is right” should have long ago passed into oblivion, but we cling to the myths and deception and mind-manipulation taught to use by our enslavers and from birth. Our Controllers and enslavers depend on that stupidity and our lack of spiritual insight. They want us as crude and dumbed-down Orwellian Paroles to manipulate. It has been that way through history. Trying to measure the “good” points versus the “bad” points could be a skill attempted for a professional and advanced historian, but it does little for now in viewing “my side is holier than your side” misconceptions to date. As culprit, Errol Childress told detective Rust Cohle in the TV series TRUE DETECTIVE: “Take off your mask, little priest!”

Stephen Erdmann: June 23, 2018:  Geneva Hagen Any way you cut it, the Founding Fathers had put hard and long-thought into the Bill of Rights and it was meant for posterity and to be universal. When I speak of tyrannical-thinking, I am speaking in generalities and point it at all people with these ugly ID Monster “Masks” that hide their errors and evil vanities. There are those who wish the worst for themselves and their fellow man all under the disguise of self-righteousness, holiness, and Control of others, misguided they be in their inflated worth to destruct the Bill of Rights. If there be a way to perfect those, if even possible, so be it; but the UN can’t even follow their own guidelines for Human Rights. This is because the human being is basically ‘vampires’ that never see their own image in the mirror. This is why even the culprit Errol Childress said to detective Rust Cohle in the TV series TRUE DETECTIVE: “Take off your mask, little priest!”

Stephen Erdmann: July 3, 2018:

Becky Olmstead
Becky Olmstead: Travis Smith …um…yea….men don’t make good hookers 😉

Peter Corlis
Peter Corlis: power corrupts

Peter Corlis
Peter Corlis: But I’ve seen many good men taken to the cleaners in divorce settlements…

Stephen Erdmann: The story to human cruelty can only be divided between females and males, humans are stinkers and fallen creatures. There are many examples of the ‘techniques’ that females use, and in their evolutionary past, they have grown added ‘edges’ of cruelty. Because of their physically weaker bodies, they have adopted strong and more cunning psychological mechanisms to combat things they consider threats. A symbiotic relationship has developed between them and the Legal Industry. You see this symbiotic machination in nature all the time.

Once, when I was a security guard at a bank, the female tellers were speaking amongst themselves, openly and unrehearsed, as to that added ‘cruelty’ ‘edge’ that females possessed. It was the frank and candid conversation with no holds barred; all those female tellers were agreeing that their sex contained those extra aspects of cruelty and their sex was by-far experts at these gimmicks and evils.

In another case, a man was confronted with divorce when his wife involved him in litigation and was trying to obtain the family home and custody of his children. She had many lovers and had been conspiring with an attorney secretly for many years. His lawyers told him that he had no chance to win unless he obtained concrete proof. This he did with a telephone tap and recording over a number of weeks in which he not only recorded the lovers but the cruelty of female friends and neighbors who equally conspired to sabotage the man. At one point in the tape, the wife suggested placing poison in the husband’s soup. The conspiracy was astounding.

This is no fiction—it is completely true—I heard the uncensored tape. The conspiracy is astounding. It involved not only neighbors and supposed friends of the wife, but attorneys that she was seeing for years and years, planning on the caper. So much for the goodness of attorneys. A few weeks after he had finally paid off the house mortgage, he was presented with the divorce petition.

This same female, now single and having married a wealthy businessman (who died from cancer?), has set her sights on doing everything possible, true to her nature, to destroy the love and caring of her children for their father. And there also was some hoaxing involved in the use of Parental Alien Syndrome (PAS): the story never seemed to end. But I believe you are getting the picture, and that we’ll save for another time.

Typically, as a metaphor, a dinosaur monster charges the cave in which the caveman and his wife and children exist. The cavewoman screams and shouts instructions at the husband to attack and destroy the monster—to which he does to protect his family. He was physically stronger—but who do you think was actually in control of the situation? The real puppeteer?

Of course, we are not saying males are innocent creatures, no human or homo sapien is! Both can and do evil acts; there are an evolutionary difference that have their own special and inherent peculiarities, and as the saying goes ‘Viva la difference!” —- but maybe not so happy as some ‘differences’ can be deadly and scary and uncharted. Uncharted! There has been very little scientific ‘study’ about the aforementioned “edge.”

July 23, 2018.  To Tony Elliott and Emil Donofrio:  Stephen Erdmann:  Both of you philosophers are wrong and also correct, I’ve said all I can say in my pinned Editorial Comments, spoken from the heart and my own life experiences. People live in rigged ‘boxes’ taught from birth and most won’t budge an inch to get out of them. I still have isolated prejudices myself that I am working on. Emil is certainly correct: no one—no one–has created true Capitalism, and they are not living in a real ‘Capitalism.’ It is an unreal, phony doctrine that Capitalists hide behind and mask their evil intentions. So, in reality, these people are living in a fairytale that never actually is taking place, other than what is on paper. To bolster that belief, these people use all kinds of slogans and banners and parade about under “Nationalism” and a lot of flag-waving and political sermons. However, likewise, all nations—every one of them–do the same thing. They do it for Power, for Money, for Control (name me one communistic or socialistic nation that doesn’t). You see, humans work this way, it is their innate mindset. It leads to all kinds of hidden agendas and Black Projects and political intrigue. We can hope and wish for some buried element of a soul, some hidden decency behind it all—but just how realistic is that when we see the harsh reality about us telling us the true story? Progressives, Socialism, Communism are also just ‘paper’ doctrine and we actually see that they, very much like their capitalistic counterparts, are probably identical, and these people also are based on Power, Money, and Control. And all these human savages will do almost anything to keep it that way. And then add the further hidden ingredient of ‘global’ partnering in these hidden and evil endeavors, and you might as well throw out that entire band standing and preaching out the window.

July 26, 2018/ Steve Erdmann on J. Elbert Whitlow’s Timeline.  Stephen Erdmann

Alex Johnson:  Bingo, you got that right, as I said above, it is the ‘taboo’ to look at women as anything but innocent, helpless, holy little angels, even after they had committed all kinds of crimes and evil acts, we just keep them on a pedestal. Took millions of years to get that programmed.

The Legal Cabal ‘must’ define love and marriage because they are the ones that construct reality in the courtroom; literally, invent it. And it is set-up to facilitate this way because of the ‘money.’ If they can’t control the situation to make their ‘profit,’ they will construct ‘any’ human endeavor to control and profit from it. No escape. That is one reason they invented “Palimony” because people started living together outside of marriage to escape their greedy grasp, and they invented Palimony to fill that gap. You see how their minds work. Not just in personal relationships, but in every corner of society: control, control, control, greed, greed, greed.

August 18, 2018 in Group to Tony Elliott:    The more basic and even accurate cause of human slavery and suppression goes far beyond any “ism” or philosophy, it is despotism and tyrannical thinking and that is global. Trying to put human evil and the human ID Monster in nice, neat little ‘boxes’ only shows our failure to recognize the real culprit and the basic evil involved. All ‘leaders’ have shared this evil trend since history recorded. There is no political “safe haven,” and what is written on ‘paper’ is nothing but masks that hide this innate manipulation.

October 7, 2018.  Stephen Erdmann: This is ridiculous: democrats are pitch-perfect, holy, never make mistakes, are rational blameless creatures__ this goes against science, history and almost every other testimony. Ford was even speaking in a phony little girl- pity-me-pity-me voice, had a growing history of CIA and radical Left involvement, and this in our latest findings of Deep State Mind Control and deceptions of the Military-Industrial-Corporate-Complex-Matrix world that we sadly find ourselves in. Take a long cold look at history (which the mobsters and radical Left or Right refuse to do): humans are savages and all their doctrines and “isms” are just ‘masks’ to hide their evil behind. Turning politics into a savage mob action with verbal and physical ‘attacks’ belies any good intentions. It only gets worse, never better. Connecting the dots are only for the more intelligent historians, and they won’t shy away from finding the true culprits, which, sadly, are on both political aisles and even beyond all politics. Females and radical feminists always did have the upper hand against males with their innate sexuality which evolved over the eons and promote this symbiosis with the Legal Cabal. They are not now, and never have been, the powerless, innocent angles their mob-actions make them out to be. Even males will sell-out to protect this ‘TABOO’ under some misguided White Knight fantasy. Ask many of males that have had to confront the Legal Cabal and discover they have only five (5) foes when they are shanghaied into court: 1) His lawyer, 2) her lawyer, 3) the judge, 4) her innate sexuality, and the status (deceptive and hidden and masked) quo.

********

Facebook, June 16, 2019

Stephen Erdmann: I will share this, I just found my daughter at home, finally after many attempted visits; a totally different person than I last saw her and not at all like the little girl I knew at one time. Someone has been working hard on her behind the scenes, but I understand this is what happens to men and people that have been caught in the clutches of the Legal Cabal. It is called Parental Alienation Syndrome. I am beginning to understand some of the missing pieces and how — after five court modifications and sessions (each one is like a new divorce) —an attempt was by Jefferson City to even, after all these ‘finalized’ sessions, to collect more support (was disallowed and rebuked by a city of St. Louis judge). That would be session number six. She said I had abandoned her. Seems to me to have been the other way around, by her mother and other people. I would have gladly opened my arms and heart to her, if they would have just approached me in a respectful and proper way, rather than demonized and threaten me (as if I did not have enough to survive under.) There is so much more – much more – to the story, so much more – but no one to listen.

Any time the government and the Legal Cabal get their fingers in to your life, you are screwed, they will make you a slave or the court – men -women – any breathing person. They will try to destroy your life, take control to their satisfaction and profit. Same thing happens to men: there are just as many horror stories. The government does not care, it is all done to their agendas, I’ve lived with this for most of my life, as well as millions of other persons. It is not a lone-happening story but the slavery most people are living under and do not realize this, men, women, children, cats, dogs, anything that is breathing. I’ve been trying to fight it.

June 18, 2019: I have found, in most divorce alienation, that the legal system is only another factor that is further nails in the coffin, another wheel in the mechanization’s, added weight, that usually works against the participants. It certainly doesn’t help them, other than the legal system’s professed doctrines and advertised publicity. Add on to that, when one parent becomes the target of the narcissism and inherent psychosis of the other parent who, not only allows, but fosters and grows, and even programs (using their full power, availability. and ingenuity) the events — “that” becomes a powerful tool of the system. I have two daughter cats that I would in no time desert or do ill to. How much better animals are compared to the savagery of humans, and we could learn so much from them. What is also sad, is that my children will not now learn about the horrid details that I know about: the affairs and conspiracy that my ex-wife was involved in, ugly, cutting stories, for which I sought counseling to save the marriage and even had a remarriage in the church: all for naught, it was as if it was somehow planned behind the scenes as if a sheep led to the slaughter. In my case, even having being caught (the lovers eventually squealed on her) she wanted to get the paid-off family home (a lot of overtime) for her and her lover (s). They will never know how the stark and convoluted reality of all this hurts: you wouldn’t believe this, unless you saw it in a movie. And the deep scares it has left. The forlorn dreams of reconciliation with my children, which were killed many years ago, unbeknownst to me.

December 31, 2019: The connection between December 25th Pagan celebrations of Winter solstice, — the “gods” of antiquity, — “the sun dying, “– “Cursed Nimrod/Christmas’s Tree,” the Satanic Infanticide Tree, — and today Pauline god of Jesus Christ.

Pagan societies, such as the Carthaginians, ancient Greece and Rome had a very different view about the value of human life than we do today. They legalized and encouraged killing their children as religious sacrifices to their gods almost universally. Nor can it be said to be simply a practice to preserve few resources to save the whole culture, but it was practiced by rich, poor citizens and slaves.

Leading pagan leaders and philosophers also encouraged the practice of Infanticide. Cicero defended the Infanticide by referring to the Twelve Tables. Plato, Aristotle and Cornelius Tacitus recommended infanticide as legitimate state policy. (Histories 5.5.). Even Seneca, otherwise known for his relatively high moral standards, stated, “we drown children at birth who are weakly and abnormal.” (De Ira 1.15.) There is no dispute among historians and informed laypersons that Infanticide was incredibly widespread in the ancient pagan world.

In both approaches, infants were particularly vulnerable to infanticide by those that should have been protecting the helpless, were the ones who were killing them. It was very uncommon for even wealthy, upper-class families to have more than one daughter in ancient Greece and Rome. An inscription found in Delphi illustrates this quite well. Of more than 600 second-century families, only one percent had raised two daughters. It was openly approved, encouraged and a very common practice, as it was justified by law and advocated by philosophers in the Pagan society. (Rodney Stark, The Rise of Christianity, pages 97-98 & 118. See also: Durant, op. cit., page 56; Susan Scrimshaw, “Infanticide in Human Populations: Societal and Individual Concerns,” in Infanticide; Comparative and Evolutionary Perspectives, eds. Glenn Hausfater and Sarah Hardy, page 439.)

In Greece and ancient Rome a child was virtually its father’s chattel-e.g., in Roman law, the Patria Protestas granted the father the right to dispose of his offspring as he saw fit. In Sparta, the decision was made by a public official. The Twelve Tables of Roman Law held: “Deformed infants shall be killed” (De Legibus, 3.8.). Of course, deformed was broadly construed and often meant no more than the baby appeared “weakly.” The Twelve Tables also explicitly permitted a father to expose any female infant. (Stark, op. cit., page 118.).

According to Plutarch, the Carthaginians “offered up their own children, and those who had no children would buy little ones from poor people and cut their throats as if they were so many lambs of young birds; meanwhile the mothers stood by without a tear or moan.” (Moralia 2.17.). According to Wikipedia, “Infanticide was common in all well studied ancient cultures, including those of ancient Greece, Rome, India, China, and Japan” with many forms: a parent directly killing the child, usually by drowning. The infant was simply held underwater until it was dead. Relatively quick, inexpensive, and the water muffled the cries; In other forms, the family would simply take the child out beyond the city and abandon it to die from exposure to the elements. In sum, pagans practiced infanticide.

On a certain day during winter solstice of December 25th, pagan societies in ancient times would make a list of all the things they wanted to the false god of prosperity for the upcoming year according to the list they’d written. They would line up with their children in their hand and they would heat their hands on this horror cast idol iron of the god of prosperity’s burning statue’s hot hands until their hands were red as a fire brand, then place and burning their babies and small children alive on the burning idol statue’s hot hands of the god of prosperity as an offering for prosperity. Amidst the hideous stench of burning flesh, and the screams and cries of hundreds of babies pierced the night air, until nothing remained except charred ashes. The people in the ancient world would begin to celebrate their false gods (they worshiped many) This practice was known in the bible as making your children pass through the fire. It was ritual child sacrifice and absolutely cursed by the One God of Abraham, Ishmael and Isaac.

Various ancient celebrations honoring this most blood-thirsty false gods prevalent today such as Christmas Eve, Baby New Year (the symbol of the child-victim), and the Janus false god (January) New year’s Eve macabre pagan holiday are tied to one another and have come down to the today world Christmas traditions celebrated on December 25th honoring the Jesuits and Molechian Zionists New World Order who want 90 per cent of the whole world dead in Purim (star pentagon) human sacrificed to Lucifer according to the Georgia Guidestones.

Early Christian documents reveal that there was a clash of cultures when Christianity converted previously pagan Romans and Greeks by instructing them that infanticide was immoral and murder. (The Didache, 90 -110 CE). Another early Christian document, the Epistle of Barnabas (130 CE), also explicitly condemned infanticide and prohibited its practices as necessary parts of the “way of light.” Moreover, by the end of the second century, “Christians were not only proclaiming their rejection of abortion and infanticide, but had begun direct attacks on pagans, and especially pagan religions for sustaining such crimes,” as the accepted practice. (Stark, op. cit., page 125., Robin L. Fox op. cit., page 350.).

But so long as Christianity remained a disfavored–and sometimes persecuted–religion, their appeals to the pagan government to act against infanticide were ineffectual in changing government policy. This Christian ‘brotherly love’ has been minimized as a reason for turning to the Church, as if only those who were members could know of it. In fact, it was widely recognized,” according to Durant, “in many instances Christians rescued exposed infant, baptized them, and brought them up with the aid of community funds.” Through these efforts, Christians worked to diminish some of the causes of infanticide. (Fox,op. cit., page 324., Durant, op. cit., page 598.) Clearly, one unique and valuable contribution of Christianity to Western Civilization was its opposition to infanticide. “but these patterns persisted among pagans far into the Christian era.” (Stark, op. cit., page 97-98.)

Christmas Tree “Cursed Nimrod’s Tree,” the Satanic Infanticide Celebration Tree on December 25th.
Christmas trees were originally decorated with burning candles made from the fat of the burned bodies of child sacrifice victims. Instead of Christmas balls, decapitated heads of sacrificial child victims were hung from the tree. Caroling was originally done by rotund old fat naked singers engaging in licentious behavior. Instead of Santa, they worshiped death, the grim reaper with his scythe (false god Saturn) who demanded child sacrifice. It is a grotesque blood splattered gore fest of barbaric sadistic delight for devil worshippers

The bible forbids putting up the Christmas tree: Jeremiah 10:1-4. Deuteronomy 16:21, Acts 17:29, just as is repeated over and over in the Qur’an that Nimrod cast Abraham on fire, and the bible says in book of chronicles, ‘the kings would not get rid of the high places, the idols, groves and other items of pagan worship and after their deaths, they did wickedly in the sight of the Lord. They will burn in hell for their involvement in paganism.’ The Christmas tree is Zaqqoum, the cursed tree as depicted in (the Qur’an17:60, 37:62 -68, 44:43, 56:52), inimical to the Abrahamic Monotheistic Tree of Ishmael & Isaac.

The Zaqqoum “Cursed Nimrod’s Tree” that springs out of the bottom of hell’ is known when Nimrod married Semiramis (i.e. Dumez and Inanna). The Anunnaki used to marry their first- and second-degree relatives, in order to preserve their “royal” blood and the right to the throne. Semiramis later became known as Ishtar, which is pronounced… Easter. Ishtar and Moloch like all other Anunnaki “gods”, because of his long life span, they were known by many names throughout history, among which: Molech, Nimrod or Ba’al (which was the highest possible title, meaning Lord). But his first name was Morduch, and he was the son of the supreme Anunnaki leader on Earth, Enki, and his wife Damkina.

The Zaqqoum began shortly after the flood with the birth of Tammuz as the reincarnation of Nimrod. When Nimrod/Dumez died, his cousin-wife Semiramis/Inanna, claimed that a full-grown evergreen tree sprang overnight from a dead tree stump. And the New Year is coming in as a young child portrayed as children ready to be sacrificed. The New Year’s still to come are Victims of child sacrifice were always heavily veiled so that their parents would not recognize when their child was burned.
The pagan Romans honored the false god, Saturn, who was usually depicted holding a scythe (death’s sickle). Saturn IS the grim reaper, the figure that emerges from and who is looking after children and demanded them for child sacrifice. It wasn’t just the romans, even some Israelites and pre-Islamic Ishmaelites (Arab Jahiliyyah) turned from the One God of Abraham, Ishmael and Isaac, and even offered their children in sacrifice to this vile bloodthirsty Saturn false gods.

It’s pagan chronic pedophiles infanticide filth! The recent kings of the North in the Illuminati and Freemasonry Occult still practicing a chilling representation of “Father Time” and “Baby New Year” that can be found in many illustrations from the 19th century. Father Time is Saturn, the god of time is standing in front of a large clock, holding his scythe illustrated that the old years kids are passing away as full-grown raped, tortured and murdered, their bodies wrapped in burial shrouds. They do so as the Illuminati and Freemasonry occult privacy pact so they won’t rat out group activities of the coven. If they ever betray the occult privacy pact, they are ousted with their names flashed across the world news channels as being a pedophile to completely destroy them.

It is a reason why we have human sacrifices all over the planet, in some of the most prevalent cultures, is because the Anunnaki required them. Hundreds of thousands of children are kidnapped every single year, most times with the help of the highest religious institutions such as the Vatican, NWO Secret Evil Agenda in Britain and USA and practiced it behind closed doors by powerful secret societies such as the Illuminati, Skull & Bones and the highest-ranking Freemasons. They are sacrificed and dedicated for Purim blood sacrifices to Lucifer (Moloch) on Wars for Business Religion (profit and power). The burial sites for the bones and ashes of sacrificed children have been unearthed. These places were known as Tophet’s.

HAPPY NEW “JANUS” SATANIC RITUAL ABUSE & MURDER YEAR 2019
https://web.facebook.com/photo.php?fbid=2270517719938756&set=a.1420552904935246&type=3&theater&ifg=1

800.000 American children disappear every year
One Every 40 seconds only in USA
https://web.facebook.com/photo.php?fbid=10156343259065916&set=a.10151326545060916&typely=3&theater&ifg=1

Now, there are two versions of the story, one stating that Dumez’s anniversary was on December 25th and his spirit would visit the evergreen tree every year on this date to leave gifts upon it. The second version states that the son of Semiramis, Tammuz, by his dead husband, Dumez, was born on December 25th. Whatever version is true, two things are clear: the Zaqqoum “Christmas tree” is in fact “Cursed Nimrod’s Tree” and December 25th is a Satanic celebration! Inanna image was idolized in the statue of Lady Liberty. (See: The Secret Worship of the Illuminati: The Statue of Liberty is Anunnaki Goddess Inanna.)

“Do not kill your children for fear of poverty; it is We Who provide for them as well as for you. Killing them is surely a grave sin.”(the Qur’an 17.31)

The “gods” of antiquity.
Though romans quit offering human sacrifice early on, but blood was still spilled for the “gods” of antiquity by the gladiators during the saturnalia celebrations in December and even Africans predominantly worshipped Saturn and were too killing their children to this ruthless fictional representation of false god Saturn (Satan) that he set up to deceive people. A false god Saturn is satanic child killing deity and had attributes most similar to Satan himself. Christmas is his religious festival. Participation in Christmas celebrations gives honor to this evil of false god Saturn.

Other “gods” of antiquity is Che mosh, the horned one (aka Molech, Krampus: the false god of witches, etc.) was represented as a huge cast iron statue in the shape of a horned god with an extended hands as if he is ready to receive something. It was known as the god of prosperity. Also, Krampus is a Christmas devil companion of Santa (i.e. anagram for Satan) who punishes children by beating them with a stick or steals them in his sack. Google images of Nimrud bags/sacks. It is currently Israel Secret Intelligence Service’s (ISIS) sacks filled with human heads.
https://www.google.com/search?q=images+of+nimrud+“bags”&safe=strict&client=opera&hs=kd0&sa=X&biw=1326&bih=626&tbm=isch&source=iu&ictx=1&fir=9ZuISWvXdU5iSM%253A%252CuemyzHna9GmHlM%252C_&vet=1&usg=AI4_-kQoRVQx82kGwdPRAXmy4-inuKK_qg&ved=2ahUKEwjUzrDIheDmAhWe6nMBHcWcD-UQ9QEwAHoECAoQBg#imgrc=9ZuISWvXdU5iSM:

The figure resembles another horned being, that of Moloch (i.e. Anunnaki “god” Morduch) who was also given children through fire or to a giant throne. But that is another pagan/Anunnaki “Easter. Celebration” that was adopted by modern religions. The “gods” then used to eat the fresh hearts of the sacrificed children and drink their adrenaline-filled blood. Today’s highest ranking prelates still conduct these rituals in secret ceremonies, while the rest of them are required to conduct an open phony version of the same ritual, the liturgy/mass.

The “gods” of antiquity were flesh and bones Anunnaki and the so called “pagan” religions that followed all the grotesque elements of this hideous gods are contained in worshipped them under different names and almost identical cult rituals. This cannibalistic traditions and occult rituals of the Liturgy/Mass is the most prevalent of all today’s the so called “pagan” religions that followed, worshiped them under different names and almost with identical occult rituals of paganism (i.e. the worship of the Anunnaki colonizers “flesh and bones”), and including Christianity, in which all Christians across the planet are required to pretend drinking the blood and eating the flesh of – allegedly – Jesus Christ. The bishop clothes, miter and staff of today’s prelates are identical to those of the Babylonian priests of Dagon, which represented their god-fish Dagon (i.e. Enki wearing his astronaut suit and staff-shaped weapon).

The connection between the Pagan celebrations of Winter solstice, “the sun dying” and the today Pauline god of Jesus Christ.

According to popular tradition, Christmas is celebrated on 25 th December to honor the birth of Jesus. However, no records exist in the Bible or elsewhere to suggest that Jesus was actually born on this date, which raises the important question – why is Christmas celebrated on 25 December? In fact, the selection of this date has its root in both Persian and paganism gods traditions.

The Catholic Encyclopedia admits “there is no month in the year to which respectable authorities have not assigned Christ’s birth.” Since it appears unlikely that Jesus was born on 25th December, it raises the logical question of why Christmas is celebrated on this date. The answer points back to the Romans’ pagan celebrations of the winter solstice. Two celebrations in particular took place around December 25 – the Saturnalia, and the birthday of the Sun god, Mithra (Catholic Encyclopedia). The Saturnalia festival began on 17 th December and later expanded with festivities through to the 25 December. It paid tribute to Saturn, the agricultural god of Sowing and Husbandry, and was associated with the renewal of light and the coming of the new year. The holiday was celebrated with a sacrifice in the Temple of Saturn, a public banquet, followed by private gift-giving, continual partying, and a carnival atmosphere

Followers of the cult of Mithras, which became popular among the military in the Roman Empire from the 1 st to 4 th centuries AD, are believed to have celebrated his birthday on 25th December, which was the most holy day of the year for many Romans. The worship of the Sun god, Mithra (proto-Indo-Iranian ‘Mitra’), has its origin in Persia, from around the 6 th century BC, and was later adapted into Greek as ‘Mithras’. The most popular hypothesis is that Roman soldiers encountered this religion during military excursions to Persia.

While it is widely accepted that the Mithraic New Year and the birthday of Mithras was on 25 December and was celebrated on this day as part of the Roman Natali’s Invictus festival, others have argued that the Natali’s Invictus was a general festival of the sun, and was not specific to the Mysteries of Mithras. Nevertheless, it is clear that 25 December was an important day for the Romans and revolved around a celebration of the sun.

There are, however, a number of reasons to suggest that Jesus was probably not born in December. Firstly, Luke 2:8 states that on the night of Jesus’ birth ” there were also in that same country shepherds living out of doors and keeping watches in the night over their flocks.” Many scholars agree that this would have been unlikely in December, as shepherds would have been keeping their flock under cover during the cold winter months. Some scholars have stated that shepherds would not watch their flock overnight in December but would keep them under cover. ‘The Good Shepherd’ from the early Christian catacomb of Domitila/Donatella (Crypt of Lucina, 200-300 CE). ( Wikimedia Commons ). Secondly, it is written in the Bible that Joseph and Mary travelled to Bethlehem to register in a Roman census (Luke 2:1-4). However, such censuses were not taken in winter, when temperatures often dropped below freezing and roads were in poor condition.

The Pagan solstice dates to celebrate the return of the sun (…son) were absorbed into the Christian calendar so that there would be a link to encourage pagans to give up their beliefs and gods and move to Christianity. Some claim to have found a lot of pangamic parallels and similarities with Christianity, particularly in the cult of the god Attis. Attis was associated with the goddess Cybele. The cult of Attis was a religion which involved orgiastic rites and rituals. The priests of the religion, the Gallai, were eunuchs. This requirement was part of a re-enactment of one of the principle myths regarding Attis and Cybele. It is also claimed that Attis was born on December 25th and that he was born of the virgin, Nana, and that Attis died on a tree and rose from the dead. Or of Isis, the Egyptian goddess who fed the Nile with her tears and, in the past, was responsible for nurturing Pharaoh and giving him his divine power to govern Egypt effectively. Mithra, the sun-god of Mithraism, said to be born on December 25th, but also Osiris, Horus, Hercules, Bacchus, Adonis, Jupiter, [Nimrod]/Tammuz, and other sun-gods were also supposedly born at what is today called the ‘Christmas’ season, the winter solstice!” (“The Two Babylon’s” by Alexander Hislop, p.93.)

When King Constantine converted to Christianity in the fourth century, he had quite a challenge ahead of him with regard to converting an empire full of pagans. It was therefore decided to celebrate the birth of Jesus on a date that was already sacred according to pagan traditions. So as a compromise with paganism and in an attempt to give the pagan holidays Christian significance, it was simply decided that the birthday of the Sun God would also be the birthday of the Son of God. The Catholic Encyclopedia quotes an early Christian with saying, “O, how wonderfully acted Providence that on that day on which that Sun was born…. Christ should be born”.

Isa al-Masih (Christ) is stolen from us and renamed because King Constantine felt his god was superior to the Christ and it was done to make it easier for his Pagani Empire to convert..

Biblical Evidence Shows Jesus Christ Wasn’t Born on Dec. 25
https://www.ucg.org/…/biblical-evidence-shows-jesus-christ-…

You can reach Steve Erdmann – at  – dissenterdisinter@yahoo.com or independenterdmann@gmail.com.
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I can’t believe my Eyes!

Believing is not Seeing

Posted on  by steveerdmann      Rate This

“There is only one cause of unhappiness: the false beliefs you have in your head, beliefs so widely spread, so commonly held, that it never occurs to you to question them.”  Anthony De Mello

By: Steve Erdmann

A similar article can be found at https://wordpresscom507.wordpress.com/2021/11/12/believing-is-not-seeing/

              BREAK AWAY MAN

It is always refreshing when trained and thoroughly experienced investigators suggest fresh and overlooked avenues of a scientific phenomenon. Dr. John B. Alexander has done that with his ideas of a “step back process” to study precognitive sentient phenomena (PSP), of which UFOs are certainly a part, but only a part, of an all-encompassing and “anfractuous” phenomenon “beyond current comprehension”.

Dr. John B. Alexander, author of The Warrior’s Edge, speaks as a Green Beret combat veteran, a retired Colonel – U.S Army Project Manager at Los Alamos National Laboratory, NATO studies of nonlethal weapons, the National Research Council, Council on Foreign Relations, a consultant to the National Intelligence Council, the CIA, the U.S Special Operations Command, and the Army Science Board (UFOS: Myths, Conspiracies, andRealities, St. Martin’s Press, 175 Fifth Avenue, New York 10010, 2011, $25.99. 305 pages).

Alexander “DE myths” at the same time he supports the reality of the phenomena.  One of the major fallacies, he says, is that the government is in the “know” and THEY are out to cover up the facts. To the contrary, Alexander set up an Advanced Theoretical Physics Project (ATP) to try and discover if such an “inner sanctum” group exists. Alexander queried many very high-security, high-level personnel:  they all assumed THEY existed but no one knew who THEY were.

“The ultimate answer appears to be that nobody does have that responsibility,” says Alexander. “While this notion runs counter to all of the conspiracy theorists’ proclamations, that was the bottom line.”

The other myth he contends with, aside from THEY, is that surely the government must be expending large amounts of “black budget money” to study UFOs, crashed or otherwise; and it largely has to do with The Budget and priorities.

“As big as the DOD budget is, it remains the aforementioned zero-sum game, meaning for every project that gains funding, another must lose theirs,” says Alexander.  “Interdepartmental, as well as intradepartmental, battles over funding are vicious and played by the most ruthless, merciless bastards on the planet.”

The DOD is run by Program Objective Memorandum or POM.

Department of Defense and other government programs are “a continual process in which programs are constantly being evaluated with a myriad of comptroller vultures waiting to pounce on any perceived programmatic weakness,” says Alexander.  “Just note that most research and development programs, as well training funds, have taken tremendous cuts and are constantly under scrutiny as bill payers (sources from which funds can be transferred to other projects).” 

Funds are usually already dedicated to some current project and hawkish eyes plan theft on various levels; even Black Projects are not exempt from oversight: They have Technical Review Committees and bodies that determine what gets funded or not.

“With highly classified programs, there are fewer legislators involved in the process,” says Alexander, “but they are there.” The Department of Defense (DOD) fits under the Executive Branch, and everything comes together to the President of the United States, (even with his aides) “over everything: just because a program is Black does not allow underlings to determine the validity of reporting acquired information.”

MAKES NO SENSE

U.S government agencies usually run out of money long before they run out of projects with validated requirements.  When extralegal or clandestine means to move funds are attempted there are catastrophic results; huge cross-jurisdictional issues, resulting in Congressional and criminal investigations of misapplication of funds. Even “flexions” (powerful players who move seamlessly from opposing positions of power) are not agile enough to operate above all the sectors.  I am reminded of the eventual exposure of the BCCI banking scandal; as well as the Mafia-CIA associations in the 1960s; others.

‘When you consider the number of people who would have had access to critical information over a period of more than a half a century,” says Alexander, “the resulting silence on UFO matters does not make sense.”

Worse yet, when key individuals “express a personal interest in UFOs”, and they are mistakenly to mean their organizations accept responsibility or involvement in studying the phenomena – which they don’t have.

The truth of the matter is, says Alexander, that the government has never been able to get anything right – including UFO investigation. Just look at the mess they’ve made of things such as bungling secrecy, war, money, and other responsibilities on down the years.

OPEN ADMISSIONS

Surprisingly, the governments have disclosed from time to time, as individuals, that UFOs are real (as one example, Alexander cites Colonel General Igor Maitsev’s, Chief of Staff of the Soviet Air Dense Forces statement of March, 1990: “Skeptics and believers both can take this as official confirmation of the existence of UFOs”).  Generals, Presidents, Congressmen have stated their belief in the reality of UFOs.  What governments have not  been willing to do is to endorse a bogus theory or unequivocally uphold subjective and private fantasies.

“The probability of an all-out invasion by hostile extraterrestrials may rank in Hollywood, but it is deemed as an extraordinarily low probability by officials who would be responsible for organizing a human response,” says Alexander, “It is in this content that the role of the U.S government‘s involvement is studying UFOs should be examined.”

Instead, Alexander is impressed by “The Trickster” actions of PSP and the Catch-22 involved, which officials run away from and can’t handle, or they are somehow “held back.”

Alexander, however, doesn’t skimp on sensational PSP cases: one is the Cash-Landrum case; another is the March 16, 1967, Maelstrom Air Force Base case; the Robert Salas case; the December,1980 Royal Air Force at Bent waters, United Kingdom case; the Skin walker-ranch-Utah-Bigelow case; and many others. Unfortunately, the public (especially UFO ‘believers’) assumes the government has a deep interest in UFOs just because anomalies are reported.  Alexander says this is not true: “Large institutions are very bureaucratic in nature.”

Many officials are heavily restrained by ridicule to their careers if they spoke assertively on UFOs. Likewise, Alexander says: “There is no credible evidence that reverse-engineered ARV exist (Alien Reproduction Vehicles from UFO crashes).” THEY supposedly have captured the secrets of limitless energy at very low cost—which come under the ownership of the American people—and solve most of the “massive socio-economic problems” facing mankind.  This hasn’t  happened.

Apparently, as well, according to Alexander, Ben Rich of the super-secret Skunk Works, denies his previous alleged comments about ETs and Black Projects.

MENTAL PROBLEMS OF DEBUNKERS AND BELIEVERS

(“Irrational thinking will never be overcome by empirical evidence.” Jon Stewart, host of The Daily Show on Comedy Central.)

Particularly interesting is Alexander’s comments on skeptics and their psychological problems. Alexander lists cases of Precognitive Sentient Phenomena – some very startling and striking – and many suggesting that the extraterrestrial hypothesis is too limited.  The skeptics, he says, are not geared to study PSP because of mental defects:

“Nor is it likely that any amount of evidence would persuade them to change their minds.  While I consider myself to be rather skeptical of many claims, with good reason, they would better be classified as debunkers. The basic premise is that these anomalous events can’t be true, therefore they aren’t. If they cannot disprove the anomaly, they assume that the prosaic, commonplace answer has not yet been found – but they are equally confident that none exists.  Facts are not of consequence, just inconvenient details and often ignored.”

Alexander says such “debunkers” suffer from a mental disorder of sorts which he calls cerebral centrism, “a typical American position in which we believe that we are smarter than everyone else.”  Some believe that 99 percent of everything science will learn has already been discovered.  UFOs are usually reduced to ‘flares’ and ‘astronomical bodies.’

The debunkers reply on discussing weak cases, and their extrapolating to the whole field.  Debunkers believe in the impossibility of these events; however, as Hal Puthoff notes and Alexander says. “….they are not sufficiently skeptical to question the views – ones that often do not fit the facts of the situation – that are aligned with their own mythology.”  Fear, atheism, hostility towards religion, animus about new horizons in physics are known threads in the psychopathology of debunkers.

FRAUD AND PHANTASMAGORIA

The ‘flip side’ of this aberration-coin is just as frightening, if not more so.  Alexander acknowledges that a larger percentage of the population has elements of mental illness, particularly various forms of schizoid illness and schizophrenia.

“The fantasies associated with UFO phenomena are boundless…created an exotic tapestry…important downside for serious research…outrageous tales provide fodder for ad hominem attacks…having serious mental health problems is far greater than generally imagined…” (Pages 267-268)

The last two mentioned factors alone can be an epidemic that has scared away serious interest by the government and led to ventures like the riddance of the UFO Project by the Air Force and the creation of the Condon UFO Committee – as well as the continual avoidance by the public.  What do you do with blatantly uncontrollable phantasmagoria; and what about the accompanying fraud?

REVISIONISM

One added aspect is that of revisionism and obliteration of history:

  • For example, Alexander and Hal Puthoff have determined the mystical MJ-12 documents have originated in a real “Continuity of Government” (COG) plan created under President Eisenhower in the early post-World War II days, to prevent nuclear decapitation of the U.S government. The creation of the National Security Act, the National Security Council, and the Central Intelligence Agency emerged almost simultaneously, close to September 18, 1947, and near the MJ-12 date of September 24, 1947. The COG plan also created “hardened secret underground bases” and other “hidden subterranean facilities.”  The barebones description of MJ-12 dovetails with a “dearth of written substantiation” of the COG. UFO enthusiasts doctored such classified documents and weaved a tale of extraterrestrial cover, and the UFO community further took the myth to all-time heights.
  • A local St. Louis UFO Study Group does the same historical “revisionism” recreation, playing with facts and dates, even subtlety using innuendo for added distortion. The Study Group was basically “kicked off” in earliest meetings in the first few months of Winter/Spring 1967 under the tutorship and direction of UFO authority John Schuessler, at the time, an engineer at McDonnell-Douglas Aircraft, and St. Louis A.P.R.O and N.I.C.A.P members (including August Hearst, Arthur Epstein, Ray Nelke, Cliff Palmberg, Richard Phillips, David Schroth, for a few) who sent out press and news releases and had public announcements in local newspapers, including Walt Andrus’ Skylook Magazine.  After a few years, and newer members, the group decided to incorporate under Missouri law in 1971. Much later, narcissistic, and biased members, wishing to bolster their standing in the UFO community and hide these earliest facts, stated that they somehow heralded the creation of the Study Group and that the Study Group was created near their membership times:
  • A likewise situation would be that President Obama or President Clinton, and their “administrations,” claimed that the true beginnings of the Republic and Confederacy of the United States began with them, and not mention the earliest sparks of origin in William Penn, Paul Revere, Thomas Jefferson, Benedict Arnold, George Washington, Patrick Henry, Daniel Dulany, John Page, Richard Henry Lee, William Randolph, Peyton Randolph, Betsy Ross, John Berry, Gilbert Mutier, John Marshall and many others who lit the fires of America. Or, claim that Constantine in 328 A.D, by dedicating the Basilica of St. Peter – or possibly Pope Gregory –  as the first, true and real beginnings of the Christian Church, avoiding, hiding and failing to mention the original twelve disciples including Matthew, Mark, Luke, John, Judas, Peter, Thomas some 300 odd years earlier.

The revisionist’s goal is narcissism, ego-satiation, and fantasy: not full and true history (Alexander spends considerable time analyzing Philip Corso’s tale on Roswell as one example of possible historical embellishment).

(Steve Erdmann has prepared a large volume of material on the original creation of the Study Group available for the first time and purchasable at the given below address at the cost of $30.00 a volume)

QUESTIONING CONCLUSIONS

(“You cannot depend on your eyes when your imagination is out of focus” Mark Twain.)

John Alexander is to be commended for his attempts to bring added insight, with a seasoning of common sense, to the topic of UFOs and PSPs, though one can still wonder about some of his conclusions.  For example, if PSPs have cases of unfriendly, even destructive, happenings (such as physical damage, like radiation burns, animal mutilations), how can people in government keep saying “there is no threat”?  And if UFO stories and PSP phenomena are so awash in mental illness and hoaxing, what would asking the public to get into a reporting frenzy invite (page 270): would we not be inundated with a flood of liars?  Should we not first contend with these blockages before rather than as we venture ahead? It is hoped that Alexander will address these topics further.

“Based on credible witnesses and backed by Physical evidence, I conclude that UFO observations are manifestations of issues that are anfractuous and beyond current comprehension,” concludes Alexander. “The extraterrestrial hypothesis is but one possibility, and probably not the best fit with the facts…we must beware of the Puzzle Paradox that plagues the field with UFOs we are still collecting various disparate pieces…contumacious puzzle.”

Those wishing to contact Steve Erdmann may reach him at independenterdmann@gmail.com

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When we never Learn!

An analysis of a Crisis

Posted on  by steveerdmann      Rate This

Edited by Steve Erdmann

Bibliography of the late, great aftermath of the 2008 financial Wall Street Crisis

In 2008 a financial crisis enveloped America and spread to the world.  We apparently had not learned “our lesson” from previous financial crises. This one involved fancy Wall Street shorts and options and insurance, almost as if “someone” at the “top” –  (“someone[s]”)  –  wanted to play with the markets and make a lot of money – also by controlling – not only the people in America but people all over the world; indeed, like a deadly virus out of a Bruce Willis 1995 Twelve Monkeys movie where James COLE sees 99% of the population whiped out or THE 2011 Rise of the Planet Of The Apes  movie where the 113 serum has a viral effect on humans, whipping out the human race, the 2008 financial crisis also spread around the world.

The following is a cavalcade of events in the news outlining the cause, progression and fruition of that “versus”.

Bradley Keoun and Phil Kuntz – Aug 22, 2011 –  7:19 AM EST

Chief executive officers from eight of the largest U.S. banks receiving government aid testify at a House Financial Services Committee hearing in Washington, D.C on Feb. 11, 2009.

Aug. 22 (Bloomberg) — The Federal Reserve’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money. The largest borrower, Morgan Stanley, got as much as $107.3 billion, while Citigroup Inc. took $99.5 billion and Bank of America Corp. $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress. Erik Schatzker and Sara Eisen report on Bloomberg Television’s “Inside Track.” (Source: Bloomberg)

Aug. 22 (Bloomberg) — Robert Eisenbeis, chief monetary economist at Cumberland Advisors Inc., talks about $1.2 trillion of public money the U.S. Federal Reserve secretly loaned to Wall Street banks and other companies. Eisenbeis, speaking with Mark Crumpton on Bloomberg Television’s “Bottom Line,” also discusses the outlook for Fed monetary policy and the U.S. economy. (Source: Bloomberg)

Aug. 21 (Bloomberg) — Robert E. Litan, a former Justice Department official who in the 1990s served on a commission probing the causes of the savings and loan crisis, now vice president at the Kansas City, Missouri-based Kauffman Foundation, Richard Herring, a finance professor at the University of Pennsylvania, Roger Lister, a former Fed economist who’s now head of financial-institutions coverage at credit-rating firm DBRS Inc., and Kenneth Rogoff, a former chief economist at the International Monetary Fund and now an economics professor at Harvard University, talk about the U.S. government’s $1.2 trillion bailout of the banking system and the outlook for regulatory overhaul of the industry. (Source: Bloomberg)Play Video

Aug. 22 (Bloomberg) — Neil Barofsky, former special inspector general for the Troubled Asset Relief Program and a Bloomberg Television contributing editor, talks about the Federal Reserve’s emergency loans during the financial crisis. Fed Chairman Ben S. Bernanke’s effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.  Barofsky speaks with Erik Schatzker on Bloomberg Television’s “Inside Track.” (Source: Bloomberg) Play Video

Aug. 22 (Bloomberg) — Charles Peabody, an analyst at Portales Partners LLC, and Bloomberg reporter Bradley Keoun discuss the Federal Reserve’s emergency lending programs and the capital position of U.S. banks.  They speak with Erik Schatzker and Michael McKee on Bloomberg Television’s “Inside Track.” (Source: Bloomberg)

Wall Street Aristocracy Got $1.2 Trillion From Fed

Citigroup Inc. and Bank of America Corp. were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.

Citigroup Inc. and Bank of America Corp. were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever

Lloyd Blankfein, CEO of Goldman Sachs; Jamie Dimon, CEO of JPMorgan Chase and Co.; Robert  P.Kelly, CEO of the Bank of New York; Ken Lewis, CEO of the Bank of America; Ronald E. Logue, CEO of State Street; John Mack, CEO of Morgan Stanley; Vikram Pandit, CEO of Citigroup; and John Stumpf, CEO of Wells Fargo, testify during the House Financial Services oversight hearing of the Troubled Assets Relief Program (TARP). Two weeks after Lehman Brothers Holdings Inc.’s bankruptcy triggered a global credit crisis, Morgan Stanley countered concerns that it might be next to go by announcing it had ‘strong capital and liquidity positions.’

Two weeks after Lehman Brothers Holdings Inc.’s bankruptcy triggered a global credit crisis, Morgan Stanley countered concerns that it might be next to go by announcing it had ‘strong capital and liquidity positions.’ A Wall Street sign stands outside the New York Stock Exchange in New York, U.S. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.

A Wall Street sign stands outside the New York Stock Exchange in New York, U.S. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret. Citigroup Inc., along with Morgan Stanley and Citigroup Inc., were the biggest borrowers under seven U.S. Federal Reserve emergency-lending programs.

Citigroup Inc., along with Morgan Stanley and Citigroup Inc., were the biggest borrowers under seven U.S. Federal Reserve emergency-lending programs. The Federal Reserve provided as much as $1.2 trillion in public money to banks and other companies from August 2007 through April 2010 to head off a depression.

The Federal Reserve provided as much as $1.2 trillion in public money to banks and other companies from August 2007 through April 2010 to head off a depression. Source: Bloomberg

Morgan Stanley, along with Citigroup Inc., and Bank of America Corp., were the biggest borrowers under seven Fed emergency-lending programs. The three banks’ combined $298.2 billion in hidden Fed loans was triple what they received in publicly disclosed bailouts from the U.S. Treasury.

Morgan Stanley, along with Citigroup Inc., and Bank of America Corp., were the biggest borrowers under seven Fed emergency-lending programs. The three banks’ combined $298.2 billion in hidden Fed loans was triple what they received in publicly disclosed bailouts from the U.S. Treasury. Bank of America Corp., along with Morgan Stanley and Citigroup Inc. was one of the biggest borrowers under the U.S. Federal Reserve’s emergency-lending programs. The three banks’ combined $298.2 billion in hidden Fed loans was triple what they received in publicly disclosed bailouts from the U.S. Treasury.

Bank of America Corp., along with Morgan Stanley and Citigroup Inc. was one of the biggest borrowers under the U.S. Federal Reserve’s emergency-lending programs. The three banks’ combined $298.2 billion in hidden Fed loans was triple what they received in publicly disclosed bailouts from the U.S. Treasury. The Royal Bank of Scotland took $84.5 billion in loans from the U.S. Federal Reserve’s emergency-lending programs.

The Royal Bank of Scotland took $84.5 billion in loans from the U.S. Federal Reserve’s emergency-lending programs. UBS AG, Switzerland’s biggest bank, got $77.2 billion in loans from the U.S. Federal Reserve’s emergency-lending programs.

UBS AG, Switzerland’s biggest bank, got $77.2 billion in loans from the U.S. Federal Reserve’s emergency-lending programs. Goldman Sachs Group Inc., the fifth-biggest U.S. bank by assets.

Goldman Sachs Group Inc., the fifth-biggest U.S. bank by assets. U.S. Federal Reserve borrowings by Societe Generale SA, France’s second-biggest bank, peaked at $17.4 billion in May 2008, four months after the Paris-based lender announced a record 4.9 billion-euro ($7.2 billion) loss on unauthorized stock-index futures bets by former trader Jerome Kerviel.

months after the Paris-based lender announced a record 4.9 billion-euro ($7.2 billion) loss on unauthorized stock-index futures bets by former U.S. Federal Reserve borrowings by Societe Generale SA, France’s second-biggest bank, peaked at $17.4 billion in May 2008, four trader Jerome Kerviel.

Finance ‘Aristocracy’ Took $1.2 Trillion in Loans

U.S. Federal Reserve borrowings by Societe Generale SA, France’s second-biggest bank, peaked at $17.4 billion in May 2008, four months after the Paris-based lender announced a record 4.9 billion-euro ($7.2 billion) loss on unauthorized stock-index futures bets by former trader Jerome Kerviel.

U.S. Federal Reserve borrowings by Societe Generale SA, France’s second-biggest bank, peaked at $17.4 billion in May 2008, four months after the Paris-based lender announced a record 4.9 billion-euro ($7.2 billion) loss on unauthorized stock-index futures bets by former trader Jerome Kerviel. Citigroup Inc. (C) and Bank of America Corp. (BAC) were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.

By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.

Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley (MS), got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.

“These are all whopping numbers,” said Robert Litan, a former Justice Department official who in the 1990s served on a commission probing the causes of the savings and loan crisis. “You’re talking about the aristocracy of American finance going down the tubes without the federal money down the tubes without the federal money.”

Foreign Borrowers

It wasn’t just American finance.

Almost half of the Fed’s top 30 borrowers, measured by peak balances, were European firms. They included Edinburgh-based Royal Bank of Scotland Plc, which took $84.5 billion, the most of any non-U.S. lender, and Zurich-based UBS AG (UBSN), which got $77.2 billion. Germany’s Hypo Real Estate Holding AG borrowed $28.7 billion, an average of $21 million for each of its 1,366 employees.

The largest borrowers also included Dexia SA (DEXB), Belgium’s biggest bank by assets, and Societe Generale SA, based in Paris, whose bond-insurance prices have surged in the past month as investors speculated that the spreading sovereign debt crisis in Europe might increase their chances of default.

The $1.2 trillion peak on Dec. 5, 2008 — the combined outstanding balance under the seven programs tallied by Bloomberg — was almost three times the size of the U.S. federal budget deficit that year and more than the total earnings of all federally insured banks in the U.S. for the decade through 2010, according to data compiled by Bloomberg.

Peak Balance

The balance was more than 25 times the Fed’s pre-crisis lending peak of $46 billion on Sept. 12, 2001, the day after terrorists attacked the World Trade Center in New York and the Pentagon. Denominated in $1 bills, the $1.2 trillion would fill 539 Olympic-size swimming pools.

The Fed has said it had “no credit losses” on any of the emergency programs, and a report by Federal Reserve Bank of New York staffers in February said the central bank netted $13 billion in interest and fee income from the programs from August 2007 through December 2009.

“We designed our broad-based emergency programs to both effectively stem the crisis and minimize the financial risks to the U.S. taxpayer,” said James Clouse, deputy director of the Fed’s division of monetary affairs in Washington. “Nearly all of our emergency-lending programs have been closed. We have incurred no losses and expect no losses.”

While the 18-month U.S. recession that ended in June 2009 after a 5.1 percent contraction in gross domestic product was nowhere near the four-year, 27 percent decline between August 1929 and March 1933, banks and the economy remain stressed.

Odds of Recession

The odds of another recession have climbed during the past six months, according to five of nine economists on the Business Cycle Dating Committee of the National Bureau of Economic Research, an academic panel that dates recessions.

Bank of America’s bond-insurance prices last week surged to a rate of $342,040 a year for coverage on $10 million of debt, above where Lehman Brothers Holdings Inc. (LEHMQ)’s bond insurance was priced at the start of the week before the firm collapsed. Citigroup’s shares are trading below the split-adjusted price of $28 that they hit on the day the bank’s Fed loans peaked in January 2009.

The U.S. unemployment rate was at 9.1 percent in July, compared with 4.7 percent in November 2007, before the recession began.

Homeowners are more than 30 days past due on their mortgage payments on 4.38 million properties in the U.S., and 2.16 million more properties are in foreclosure, representing a combined $1.27 trillion of unpaid principal, estimates Jacksonville, Florida-based Lender Processing Services Inc.

Liquidity Requirements

“Why in hell does the Federal Reserve seem to be able to find the way to help these entities that are gigantic?” U.S. Representative Walter B. Jones, a Republican from North Carolina, said at a June 1 congressional hearing in Washington on Fed lending disclosure.

“They get help when the average businessperson down in eastern North Carolina, and probably across America, they can’t even go to a bank they’ve been banking with for 15 or 20 years and get a loan.”

The sheer size of the Fed loans bolsters the case for minimum liquidity requirements that global regulators last year agreed to impose on banks for the first time, said Litan, now a vice president at the Kansas City, Missouri-based Kauffman Foundation, which supports entrepreneurship research.

 August 24, 2011 – By Keith Fitz-Gerald, Chief Investment Strategist, Money Morning

Lloyd Blankfein, chief executive officer of Goldman Sachs Group Inc. (NYSE: GS), has hired high-profile criminal defense lawyer Reid Weingarten.   This is a game changer even if we don’t yet know where the fire is. Blankfein has led the firm for six years and spent the past two dealing with allegations of conflicts of interest and fraud. A Senate report released in April said Goldman dumped subprime loan exposure onto unsuspecting clients during the mortgage meltdown and then in 2010 gave Congress misleading testimonials about the firm’s actions. So far, Blankfein has not been accused of any crime or crimes. That means, and I cannot stress this strongly enough, that he is innocent in the court of law – even if he is held slightly above pond scum in the court of public opinion for his and Goldman’s role in causing the financial crisis. Under the circumstances, I cannot help but wonder:

Is the U.S. government’s investigation into Goldman Sachs (and other financial houses) gaining momentum and has the government notified Blankfein that he is a person of interest in one or more of those cases?

Is there a whistleblower inside Goldman, or are there key players who have “rolled over” in an attempt to protect themselves?

Is Blankfein retaining Weingarten personally on his nickel? If so, at whose direction? (I also can’t help but wonder if Goldman’s interests and those of its senior executives have separated as a result of the increased legal scrutiny…)

Could Blankfein have some sense of what’s in the wind and simply be making a preemptive grab to obtain the best counsel before others who also will need criminal counsel do the same thing?

Or is there something as simple as a conflict of interest that has yet to emerge publicly?

At this point there are more questions than answers…but I have a feeling this won’t remain the case for long.
Allegations against Goldman of trading against its clients and favoring certain clients over others will not fade quietly into the night this time around, with the global financial crisis having wiped a whopping 
$28 trillion from global markets in 2008.
The news of Blankfein’s hire pushed down Goldman shares 4.7% late Monday to close at $106.51.

August 24, 2011 – By Keith Fitz-Gerald, Chief Investment Strategist, Money Morning

I hate to sound alarmist, but it looks as though the European banking system – and consequently the global banking system – is edging its way towards another epic collapse. That means in just a few short months, stocks could be back at their 2009 lows while gold prices travel north of $2,500 an ounce. This is the worst-case scenario that’s been bandied about ever since Europe’s debt problems first came to light.  How do we know that this is what’s happening? Because somebody is having trouble obtaining the money they need — and they just borrowed it from the lender of last resort. The European Central Bank (ECB) last week lent $500 million dollars to an undisclosed Eurozone bank through a credit mechanism that had been dormant for the past 12 months, with the exception of one $70 million draw in February.
This comes as no surprise – the warning signs have always been there.  In fact, 
I warned Money Morning readers just a few weeks ago that the Eurozone could have its own American International Group Inc. (NYSE: AIG) – or worse, its own Lehman Bros. Holdings Inc. (PINK: LEHMQ) – lurking somewhere in the shadows. Still, while this may not surprise you, it certainly surprised the heck out of the rose-colored glasses crowd that can’t seem to understand the European sovereign debt crisis is finally about to wash up on our shores.  That’s why stocks in the United States and around the world have taken such a brutal beating recently. Officially the story is about the renewed worries over Europe’s debt crisis and U.S. data that suggests we’re once again sliding into a recession.  But what’s really happening is that global traders are moving quickly to liquidate holdings and raise cash while they can. That’s why so-called risk assets like stocks, corporate bonds, industrial metals, oil and higher-yielding junk instruments are tanking, as gold, the dollar and the yen are bucking up. The U.S. Federal Reserve already is engaging in damage control. President of the Federal Reserve Bank of New York William Dudley has said the risks of a double-dip recession are “quite low,” despite anemic growth. And it’s been rumored that U.S. Federal Reserve Chairman Ben S. Bernanke will telegraph new monetary stimulus measures Friday during his speech in Jackson Hole, WY. But really, who are they kidding? This crisis has nothing to do with liquidity (which is how the central bankers are trying to fight it) and everything to do with solvency (which is how they should be fighting it). Not only are the risks of a global recession mounting by the minute, but I believe the concentration of risks is approaching critical mass.

A Return to 2008.  First take a look at the Euribor-OIS swap (the spread between the Euro Interbank Offered Rate and the Overnight Indexed Swap). This swap, widely regarded as a gauge of fear in the European banking system, is at levels we haven’t seen since April 2009, and is climbing rapidly towards levels we experienced during 2008 at the height of the financial crisis.
These rates, along with the 
London Interbank Offered Rate (LIBOR), represent a sort of feedback mechanism similar to the body’s circulatory system. If the system goes into “shock” there will be a negative, self-sustaining reaction.
At the same time, shorter-term euro basis swaps have fallen to the lowest levels we’ve seen since Lehman Bros. blew up.
The premium that European banks are paying to borrow in dollars through the swaps market is at its most extreme level since the credit crisis of 2008. The cost of converting euro-based payments into dollars as measured by the three-month cross-currency basis swap fell as much as 93 basis points below the Euro Interbank Offered Rate (Euribor), indicating a higher premium to buy dollars.
Historically, anything in the neighborhood of -150 basis points suggests imminent bank failure.  Meanwhile, funds parked in the ECB’s “deposit facility” are rising, which means they aren’t being lent to other banks. Funds at the ECB deposit facility hit their highest level – $209.3 billion (145.2 billion euros) – earlier this month. And ECB data shows commercial banks parked $154.4 billion (107.2 billion euros) in the central bank’s deposit facility last Friday, up from $130.5 billion (90.5 billion euros) on Thursday.
This suggests banks are more concerned with having liquidity available to them via “official” sources rather than the open markets.

There are two reasons they would feel that way:

Because they can’t get it from other sources.

And because they don’t trust the other banks who would otherwise serve as their counter party.

Remember, banks only make 0.75% on their deposits at the ECB, which is a smaller return than what they’d receive by lending to other banks. This suggests banks value the return of their money more than the return on their money. This happened before, most recently in Japan in the 1990s. I remember living in Japan at that time, and things got so bad that the spreads on overnight deposits actually went negative for short periods. That is, Japanese banks actually paid the Bank of Japan (BOJ) to hold their money because they were scared to hold it themselves. Finally, non-U.S. bank reserves on deposit at the Federal Reserve declined from $900 billion on July 13 to $758 billion as of Aug. 3. I’ve done some calling around and heard from two confidential sources that the level may have fallen as low as $500 billion this week, which would be a near-50% drop in only weeks. According to the Fed, foreign banking institutions hold approximately 25% of all commercial banking assets in the United States. That makes me think EU banks are calling money home not because they want to but because they need to.

Shah Gilani, Capital Waves Strategist, Money Morning

Fears of a banking crisis and rolling contagion are making global stock and bond markets extraordinarily volatile – and with good reason.
Another financial meltdown, on par with what we saw in 2008, is looming large on the horizon.
One of two potential triggers could ignite a new banking crisis, a rapid contagion, and a second financial meltdown:

One or more of the troubled European countries could default outright.

Or a major money center bank could be turned away from the interbank borrowing market by its peers.

The panic resulting from either catalyst could start at any time. And it would spread like wildfire. (August 26, 2011).

(Porter Stansberry. August 19, 2011) When credit  is expanded far enough in excess of savings, you get a collapse. It happens every time. It shouldn’t surprise anyone. Sooner or later, creditors look around and begin to ask themselves a critical question: Can these debts really be financed? Will I ever get my savings back? If credit has been expanded radically beyond savings (as it has in the U.S.), the answer is invariably no. That’s what S&P was warning about two weeks ago. And that means credit will be harder and harder to get in the U.S.

Currently, the total-debt-to-GDP ratio in the U.S. is almost 400%. (Total debt is the combined federal, state, municipal, corporate, and individual debt in the U.S.) Crushing debt loads have already destroyed the real estate market and led to an economic decline. For now, the government has stepped up to replace the private borrowing and spending. As a result, we’re now spending close to half our GDP merely on interest and government taxes. This simple fact should give everyone a reason to worry about the future of our country.Spending half your production each year on the government and interest payments doesn’t leave much to live on or invest for the future.

In Europe, the problem is a bit different… and slightly more technical. Most of the debt in Europe is held by the big banks, not the sovereigns. Look at just two French banks, for example. Credit Agricole and BNP Paribas have combined deposits of a little more than 1 trillion euro. But they hold assets of 2.5 trillion euro. Those assets equal France’s entire GDP. And those are only two of France’s banks. Right now, the tangible capital ratios of these banks have fallen to levels that suggest they are probably bankrupt – like UniCredit in Italy and Deutsche Bank in Germany. BNP’s tangible equity ratio is 2.85%. Credit Agricole’s tangible equity ratio is 1.41%. (UniCredit’s is 4.42%, and Deutchse Bank’s is 1.92%). These banks have long been instruments of state policy in Europe. They’ve funded all kinds of government projects and favored industries. Making loans is far more popular with politicians than demanding repayment for loans. As a result, these banks are left with nothing in the kitty to repay their depositors. If there’s a run on these banks (and there will be), how will they come up with money that’s owed? No one’s saying. (But I’ll tell you in a moment…)

The numbers are similar across most of Europe’s biggest banks. And the money that’s owed is staggering. The reason the market fears these debts so much is that there’s no clear mechanism to increasing the money supply enough to paper them over, as there is in the U.S. As strange as it may seem, investors prefer the U.S. Treasury market precisely because they know there’s nothing to stop the Fed from buying as many Treasury bonds as the market wants to sell. On the other hand, in Europe, there’s no guarantee whatsoever that the ECB will continue to buy the sovereign bonds – and there are even rules that explicitly forbid the ECB from financing bank bailouts.

What’s the end game? How will this huge mess be sorted out? The essential problem is there’s too much credit and too little money. So a lot more money is going to be created. Two great depositories of the world’s bad debt are Europe’s banks and the U.S. Treasury. Europe’s banks will need trillions of euro (yes, trillions) to regain safe capital ratios. And the U.S. Treasury will need trillions of dollars to refinance its upcoming repayment schedule. Both will be accomplished by the actions of the U.S. Federal Reserve. Step one will be the extension of swap lines to the European Central Bank (ECB) by the Federal Reserve, which will allow the Fed to buy between $2.5 trillion-$5 trillion worth of “riskless” ECB notes. These notes will allow the ECB to bail out Europe’s banks, which will in turn begin to buy U.S. Treasuries to repair their capital ratios.

The big unknown in this scenario is whether or not the Germans will approve this massive inflation. I can’t know whether they will go along or not. But several of their biggest banks need a bailout, which leads me to believe they will eventually get on board. Whatever the final details, the goal is clear – a massive increase in the size of the Federal Reserve’s balance sheet and a correspondingly huge increase in the world’s money supply. And that’s what you’re seeing when you look at the prices of gold and silver.  How will we get from here to there exactly? I can’t know. It may be done piecemeal, one quantitative-easing program and bank bailout at a time. Or it might happen with some kind of grand new compromise – a kind of Bretton Woods II solution. But just remember where we must end up… Europe’s banks have to be recapitalized. And the U.S. Treasury has to be refinanced. The only way to accomplish this that has any chance of being approved by the democracies in question is via the printing press. That’s why I continue to warn about inflation. That’s why I continue to advocate buying gold and silver. That’s why I’m bearish on stocks (especially bank stocks). And that’s why I think it’s prudent for you to take steps to safeguard your property and your family – especially if you live in a big city. The population won’t be ignorant of what’s happening. The message will be clear: Governments and bankers have the right to steal from the whole world via inflation. That will probably inspire the crowds to do the same.

Martin Hutchinson, Global Investing Strategist, Money Morning :  By now, you’ve probably taken note of the growing bubble in Treasury bonds. The yield on the 10-year Treasury bond fell below 2% for the first time in 50 years in the wake of the U.S. credit rating downgrade. That’s irrational, and more importantly, dangerous. A Treasury bond bubble is a unique creature. In fact, it’s never been seen before, so determining its fate requires some careful thought. But what’s absolutely certain is that U.S. Treasuries are not  a safe haven investment – far from it. Treasury bonds carry five very dangerous risks – including negative yields, higher inflation, panic selling, an outright collapse, and default.  So let’s take a closer look at those risks before determining the best way to profit. First, real yields on Treasuries, after accounting for inflation, are now negative. Not only are nominal Treasury yields below the current inflation rate, but 10-year Treasury Inflation Protected Securities (TIPS) have traded on a yield of less than zero. That is very unusual and economically distorting. Long-term bond yields in the zero-inflation 19th century never fell below 2.2%, which is to be expected. The guy who provides the money should get paid for doing so. However, any reversion to historical patterns would cause a major bond bear market. Ten-year Treasury yields would rise to the 5% to 6% range – even if inflation gets no faster – giving investors a 27% mark-to-market loss. Of course, inflation will accelerate. The consumer price index (CPI) inflation is up 3.6% from last year. And it’s likely to rise much further as a result of the Federal Reserve’s loose monetary policies. If inflation were to rise to 10%, which is perfectly plausible, bond yields would have to rise to 12% to 13%, giving investors a 59% mark-to-market loss as well as eroding the value of their principal. Yet there’s an even greater threat than inflation, and that’s the U.S. budget deficit. The United States is currently running an annual $600 billion balance of payments deficit. That deficit is being financed through the sale of Treasuries to foreign buyers. Should foreign buyers cease buying, the dollar would have to fall to equalize the payments balance, perhaps by 20%. As a dollar investor, you might not mind this (though it would increase inflation). But foreign investors will hate it. The likely result would be the panicked selling of Treasuries, which would cause yields to rise sharply and prices to fall. Finally, there’s the risk of an outright default. Short-term, that’s an infinitesimal risk – but a risk nonetheless .After all, Treasuries used to be thought of as “risk free.” Now, following the S&P downgrade, they are considered “low risk.”  If the public repeatedly elects politicians who can’t or won’t take effective action to cut spending, particularly in the entitlements area, then debt eventually will spiral out of control and become impossible to repay. You’re probably free from this risk in five-year Treasuries, but not in 30-year Treasuries. Theoretically, governments can’t go bust in their own currency, since they can always print money. But that’s nonsense. There comes a point at which you have to wheel the stuff around in barrows to buy groceries – as was the case in Germany in 1923. At that point, governments have to default – there’s no alternative. With such a broad collection of risks, Treasuries should be avoided like the plague. One or more of these five wealth-destroying events will almost certainly come to pass.  (August 29, 2011)

Welcome to the fine-tuned machine that is Deception, INC.
Hello. My name is Robert Williams.  ( 1 877.242.1730.  1 410.223.2650. +1 410.230.1266.; +1 410.223.2650. 
WallStreetDaily.com –  CustomerService@WallStreetDailyInfo.com. I’m the Publisher of a progressive Investment Research Group whose mandate it is to gather intelligence and conduct thorough and unbiased investigations.) With that in mind, I’d like to show you how the G-20 Pittsburgh Summit just pushed an extraordinary event into motion.

Although the event will prove highly lucrative for some investors, before I go any further, I must warn you…This particular event exposes the truth behind a 7,500-person, ultra-discreet enterprise that I call Deception, INC. and how it controls the affairs of virtually the entire human race. It exposes how world governments and banks are now intimate business  partners .It reveals how trillions of dollars of our money – as well as the money of future generations – is being funneled into the accounts of global banking titans .And, may I dare say, Deception, INC.’s actions even reveal a crack in our proudest institution of all – capitalism. When you hear what’s happening, you’re likely to feel as outraged as me. (Losers of a rigged game often become very angry.)Worse yet, it’s all happening at a time when trillions in debt threatens the health of the world economy and our personal wellbeing. In a moment, I’m going tell you about the chokepoint in this incredible story – the $615 trillion spinning around Deception, INC.’s new private wealth exchange. And how the recent G-20 Pittsburgh resolution……and Congress’ subsequent legislation – Public Law 111-203 – gives us an irresistible opportunity to ‘skim’ that market for potentially life-changing gains .In its very first week of trading, $12.8 billion in transactions passed through Deception, INC.’s private exchange. Over the next few minutes, I’ll show you how to profitably position yourself alongside this historic event .I’ll even show you how to protect yourself from the six ingenious ways Deception, INC. cons us out of trillions of dollars. But first, here’s an unprecedented look behind Deception, INC.’s shadowy curtain…

Deception, INC. – Founded in C. 1979
As Americans, we have a pretty tough mindset. As long as we feel like policymakers have our best interests in mind, we’ll accept a finicky economy with high unemployment and low wages. We’ll even accept losses to our standard of living for long stretches of time.  Such has been the case for years.  And, to date, there hasn’t been any significant social upheaval.  Heck, we can even accept that income inequality exists, as long as we feel like we’re still getting a fair share of the pie.  BUT… When you add a perception that the economic game is rigged… That those with great wealth and power will always block our way, no matter how hard we try to get ahead…  THEN we get angry. Very angry. Today, one in every eight Americans is enrolled in the food stamps program.  Yet, a year after the financial crisis, one subsidiary of Deception, INC. paid its employees an average of nearly $600,000 per person, capping off its best year ever.  Starting salaries for Deception, INC.’s big-time congressional or White House contacts has ballooned to about $500,000.  In 2006, Deception, INC.’s top 25 trading managers earned nearly $600 million, on average, with the richest raking in $1.7 billion.  Since Deception, INC.’s founding, of all the new financial wealth created by the American economy in the ’80s, ’90s and early 2000s…

42% of it has gone to the top 1% of the population…

94% has gone to the top 20%…

And the bottom 80% has to split the rest – a measly 6% of our nation’s income.

Now, to be fair, I don’t begrudge anyone from earning a good living.  Well-founded ambition is what helped build this country.  But after you see the facts, I think you’ll agree with me that Deception, INC.’s influence on the system has totally rigged it in favor of a precious few…  And that those few enjoy too much power and influence over the size of our wallets. In the weeks ahead, I plan to leverage my position as a Publisher to get word to policymakers that we’re fed up. But for now, this grassroots effort begins here, with you.  As I mentioned earlier, there are a few profitable countermeasures that every American should be taking, which I’ll cover in detail. Of those countermeasures, one is the extraordinary result of the Pittsburgh G-20 Summit… …where world leaders paved the way for Deception, INC. to launch a massive $615 trillion wealth exchange. The formal legislation took effect in July 2011. Understand, though, our extraordinary opportunity here wouldn’t be possible without the cozy relationship that banks and government are currently enjoying.  Indeed, banks and government are dancing a very close waltz. Sure, if you look at economic history, governments and banks have alwayshad to co-exist.  Their actions have always directly influenced the financial wellbeing of the people. And the power between the two hasalways teetered back and forth, with each enjoying the upper hand for periods of time. However, today these kindred souls – banks and government – seem more unified than ever.  The tug-and-pull relationship of years past seems replaced by an outright moneymaking enterprise – one that’s wreaking havoc with our nation’s precious wealth ladder. Now, many people – even the ones closest to me – think I ought to keep my mouth shut on this. They’re advising me to bury this research and get on with the business of publishing innovative investment ideas.  I’ll concede that Deception, INC. is powerful. But, with all due respect to my inner circle, I’m staying the course and taking this information public. Knowing what I now know……I can’t sit idly by and watch the biggest con game in human history……one that’s taking money from my pocket… my family’s pocket… my friends’ pockets… and my friend’s friends’ pockets……and funneling it into Deception, INC.’s cash-filled coffers. Besides, an incredible investment opportunity is parked before us right now, directly as a result of the situation, which means my research firm is satisfying its mission. Sure, it may mean giving up a bit of my privacy.  But Deception, INC.’s actions over the last 30 years – especially the last 10 – have sent income inequality spinning out of control in the United States… It’s presently at an all-time high… It’s getting worse at an alarmingly hurried pace… And quietly becoming an embarrassing national plague. The top 0.01% – that’s one-hundredth of 1% – now earn 6% of all U.S. wages. These folks are Deception, INC.’s biggest ‘Benefactors.’ And this is increasingly their world.
Your Money Gets its ‘Last Rites’
So what exactly is Deception? 
And who are these Benefactors I just alluded to? According to Thomas Dye’s, Who’s Running America?, in the United States… …less than 7,500 individuals control “almost three-quarters of the nation’s industrial assets, almost two-thirds of all banking assets and more than three-quarters of all insurance assets.”  Working together under one banner, these 7,500 individuals – the Benefactors – along with the publicly elected (or appointed) lawmakers who enable their actions, form what I call ‘Deception, INC.’ The end product is the most dominant ‘for profit’ enterprise the world has ever known. By virtue of owning a monopoly on money, which I’ll detail in a moment, Deception, INC. has silently turned us into pigeons.  Its invisible hand influences everything… …the stock market…  …bond market…  …real estate market…  …commodities market…  …emerging markets…  …venture capital money…  …IPOs…  …politics… …lending practices… I assure you, it’s endless. While the rest of us battle being marginalized – competing against cheaper labor in other parts of the world… …Deception, INC.’s Benefactors live in 40,000 square-foot mansions, throw million-dollar birthday parties and enjoy every conceivable sociological advantage……like having access to the very best moneymaking information. According toForbes magazine, in the days following Wall Street’s cataclysmic meltdown……Deception, INC.’s 400 richest Benefactors still enjoyed a cumulative wealth of $1.27 trillion – more than the estimated cost of achieving universal healthcare for the entire country for the next decade. By contrast, middle-class America is greatly suffering. You see, for most of us, our homes represent our ONE truly major investment. So while Deception, INC.’s top brass build opulent mansions and fly private jets, the most recent data on home prices (June 2011) was a nightmare for the rest of us.  The data showed yet another big month-over-month decline in the value of homes across the United States. Home prices have lost about a third of their value since the 2006 peak, with Las Vegas being the hardest hit.  Prices there are down 57% from the peak. Worse yet, with three years of inventory still sitting on the market, there’s no relief in sight.

As I write this, about five million borrowers are at least two months behind on their mortgages.  And more will miss payments as Americans struggle with job losses and loans worth more than their home’s value. Many Americans don’t know this, but… After Wall Street politely accepted the taxpayers’ gift of life – the $700 billion bailout… …Deception, INC. lobbied against a proposal to allow those very same taxpayers the option of declaring bankruptcy rather than losing their homes to foreclosure. To date, Congress has NOT extended a rope for American homeowners to hang onto. Worse still, Wall Street took the 0% emergency loan – extended to it by the Federal Reserve and reinvested it in Treasury bills and other government securities to earn another quick fortune. So, in effect, Wall Street borrowed from the government, lent those funds back to the government, and earned the spread. Deception, INC. gets a healthy cut of the proceeds, of course. In an interview with “60 Minutes,” famed author, Michael Lewis, called this practice – one still happening today – an “elegant form of theft.”  He’s right.  But the mutual cooperation – dare I say complicity – between government and banking is what’s intriguing here. As I’ll show you, I’m only scratching the surface of a system rigged to favor the superrich. The hyper concentration of wealth at the top has been 30 years in the making. But since the year 2000, cash is flying out of our pockets even faster.  If you go back through our nation’s history, the current situation has no precedent prior to the late 1970s – when Deception, INC. began growing its roots. And that’s why I’m rushing you this message. How, in a representative democracy, can public officials favor such a small slice of Americans for so long?  And how can we get in on their gravy train? The truth, when you hear it, may shock you.

Robin Hood in Reverse? For the record, the financial crisis is only the latest example of a system rigged to favor the superrich.  The Katrina hurricane disaster, and the subsequent travesties regarding government aid and insurance payouts, predates the financial crisis by a full three years. What’s particularly noteworthy, however, is that the middle class – even the upper middle class and ‘well off’ – are feeling the pinch these days, just as much as the poor. Regrettably, it’s like Robin Hood in reverse…  he U.S. Department of Agriculture is forecasting that enrollment in the food stamp program will exceed 43 million Americans in 2011 – smashing the all-time record. Over one recent three-day period, approximately 10,000 people showed up to apply for just 90 jobs making washing machines in Kentucky for $27,000 a year. In 1950, the ratio of the average executive’s paycheck to the average worker’s paycheck was about 30-to-1.Since the year 2000, that ratio has exploded to between 300- to 500-to-1. Once great blue-collar manufacturing cities, like Detroit, have turned into rusted-out poverty zones.  Meanwhile, Deception, INC. Benefactors earn millions off of the cheap labor in third-world nations. As I already said, the rate at which income is leaving our pockets and speeding into the pockets of the Benefactors is greatly intensifying. This past decade was absolutely unique because it represented the very first time in history that the economy expanded for six consecutive years (2001-2007), YET…  During that very same period, household incomes declined and poverty levels rose!  Such behavior in wages is completely unnatural.  However, when you tighten the lens, things make a lot more sense… …between 2002 and 2007, the top 1% of American earners – Deception, INC.’s top brass – saw their incomes RISE by 10%.  Yet policymakers are doing nothing to stem the tide.  In fact, if anything, they’re the enablers of this dark enterprise.  In the days ahead, my research firm will do its part to raise public awareness regarding this massive redistribution of wealth, including broadcasting an open letter to Congress.  I’ll show you how you could take your own action, as well – should you choose to – in a moment. But, for now, you simply need to ask yourself the following question… “How much more am I willing to take?”  Because knowing where Deception, INC.’s dollars are flowing means having opportunities.  And my team’s research just yielded your first one. I’ll explain exactly what this investment is so you can decide if it’s suitable for you.  I’ll even show you how you could begin taking advantage of it, starting immediately…
For the record, Deception, INC. has already virtually rigged it for massive profits… so this is something you’ll likely want to learn more about right now.

How to Spot a Benefactor in
Less Than 60 Seconds  
The top 0.01% of Americans, who I bluntly call the Benefactors, now individually earns more than $35 million a year.  They earn $1 out of every $17 – the group’s highest amount since data collection began in 1913.  They’re NOT celebrities, athletes, entertainers, or artists.  Rather, the vast majority are CEOs or other high-level executives, with a growing number of them coming from finance and banking.  (Surprised?) They’re getting fabulously richer while the rest of us hold steady or get worse. They increase their wealth in good times and in bad times.  When the market tanked two years ago, Wal-Mart workers lost about 18% of their 401(k)s’ value.  Yet Wal-Mart’s CEO saw gains of $2.3 million in his $47 million retirement plan.  Such compensation inequality is the ‘new normal.’ In the last 30 years – during an era of unprecedented economic expansion – the Benefactors reaped massive gains.  Yet the economy virtually stopped working for middle- and working-class Americans, as their wealth compounded at a rate of only 1.5%, annually.  Get this… From 1979 to 2006, the average American household income increased from $47,900 to $71,900 – a modest 50% increase in 30 years. Over the same period, the Benefactor’s income increased from just over $4 million per year to nearly $24.3 million – a 507% increase!  As one former Benefactor said in his book, The Other Side of Wall Street… “It was as if a magical money tree blossomed overhead and all I had to do was reach higher if I wanted – or needed – more.” Before I get to the solutions, including how to start reaping the fruits of THEIR proverbial money tree, let me back up a bit… …and show you in the simplest terms possible what’s going on, why I’m so concerned and what I believe will happen in the next six months…
Battling the Ever Present ‘Money Monopoly’

The income gap between the Benefactors and the rest of country hasn’t been this big since the 1920s. Their power resides in the ability to control money. Besides controlling the actual creation of money, policymakers along with the Benefactors – Deception, INC. – have firm control over where the money flows, as well. It’s a virtual ‘money monopoly,’ as nearly every conceivable financial channel is under Deception, INC.’s influence.  And we’re all paying the price. The Benefactors’ actions sparked the collapse of the housing market, which caused the recession.  And now 14.1 million Americans are out of work.  Then, by influencing policy, the Benefactors persuaded the Federal Reserve to crank up the printing presses to pay for the bailout, which led to food-price inflation.  And now nearly 44 million Americans – a record – rely on food stamps.  In the name of ‘The War on Terror,’ ‘The War on Drugs,’ ‘Homeland Security’… or whatever else…  …the government has appropriated itself virtually unlimited spending power, which allows it to funnel wealth wherever it sees fit. All the while, the banking establishment has commandeered everyone’s credit. With YOUR finances under their control, the banks can earn tons of new money by simply allocating more credit… charging higher fees…  …even rewarding former politicians for their service in promoting the banks’ interests (more on that in a moment). If economic history has taught us anything, going all the way back to the first banknote issued in Europe in 1661, it’s this… When the easy money of a deep-pocketed government comes into contact with the moneymaking ambitions of a cash-thirsty banking sector, a deep fault line develops. In our present case, the fault line formed as an unintended, dark enterprise that I call Deception, INC. It’s One Colossal Ponzi Scheme. The hidden  cost  to you and me is that the Benefactors don’t spend their money at a rate fast enough to keep the economy humming along.  For example, in 2007, Kenneth Lewis earned around $100 million as the CEO of Bank of America.  To spend it all, he’d have to buy $273,972.60 worth of goods and services every day, including weekends.  If you dedicated 12 hours of every day to spending money, you’d still have to spend $22,831 every hour… or $380.52 every minute.  Don’t expect it to ever happen.  Consequently, every penny the Benefactors don’t spend simply turns into greater wealth for them.  And we’re boxed out. According to Forbes, the wealthiest 400 Americans’ average net worth was $3.9 billion in 2008 – more than six times larger than it was in 1985.  The bottom 80% of American earners have a net worth of around only $82,000, with many folks stuck with a negative net worth.  As you may have figured out by now, CREDIT is the central tool of Deception, INC Cynical as it may seem, Deception, INC.’s response to rising income inequality – whether carefully planned or not – is to loan you tons of money. So while the Benefactors increase their net worth in real dollars terms – day in and day out… The rest of us enjoy only the mirage of having more. Interest rates are held artificially low so the banks can extend us easy credit.  Then, on the banks’ dime, we buy homes, cars, boats, swimming pools – anything we want.  And we feel content, like we’re genuinely sharing in this country’s wealth pie.  Only we’re not. Deception, INC. didn’t invent this ploy… Extending easy credit has been used throughout history to address the deeper anxieties of the middle class. With that in mind, the current chapter on aggressive lending began writing itself in 1980 – around the very same time that the Benefactors net worth started ballooning.  By 2001, Americans owed as much as their entire after-tax income.  But the situation was getting far worse, far quicker… Over the next six years, by 2007, the typical American household owed 138% of its after-tax income.  In other words, we were collectively underwater as a nation.  The debt came racing in from everywhere – credit cards, auto loans, student loans… most of us used our homes as virtual ATM machines. Between 2002 and 2007, American households extracted $2.3 trillion from their homes – just as the Benefactors hoped we would.  Our personal debts – roughly $16 trillion – now account for 29% of total U.S. debt, which is around $55 trillion… and counting.  You can see how effective this debt strategy is.  And the Benefactors don’t just use it on individuals… not a chance! The power of debt is intoxicating enough to use at the country level, too.  I’m sure you think that sounds crazy, but as I’ll show you, it’s already happening.  You’re Not Supposed to Know This, BUT…  Here’s a dirty little secret – one which public policy is now tailored around.  Capitalism is not self-sufficient. To sustain itself, capitalism requires constant expansion and exploitation of new markets. Yet, at the same time, there are hard limits on regional (even planetary) resources. Knowing this, it’s easy to appreciate why the Benefactors created ‘emerging markets.’ Emerging markets have become one of the most coveted strategies the Benefactors use to expand their ever-increasing net worth.  Such virgin resource-rich markets, like say, Malaysia, represent perfect venues for spawning more wealth. The Benefactors employ the very same debt strategy to emerging nations as they do with consumers.  That means encumbering them with debt in return for funding development projects. When these emerging nations are unable to repay, a Deception, INC.-friendly agency – like the International Monetary Fund or the World Bank – imposes ‘structural readjustment’ programs. As any economist can tell you, these programs typically favor western banks… take away control of natural resources… and depress incomes of the local population…In some emerging economies, the progress made in health and education over the past 50 years is actually being reversed in order to pay back debts. Inside the World’s Greatest Con Game The most pressing concern for us is knowing where Deception, INC.’s money is heading next, so we can align ourselves alongside the historic launch of their wealth exchange. But I also promised to get you up to speed on the six ingenious tactics Deception, INC. uses to fleece America. As I’ve already said, the speed at which our money is being redistributed to the Benefactors – especially since the year 2000 – has never been witnessed before. In fact, between 2001 and 2006, over 53% of national income was going to the top 1%, meaning more than 50 cents of every dollar pocketed by Americans during that timeframe accrued to the richest 1 in 100 households.  Even their neighborhoods are more resilient.  U.S. home prices have fallen 33% since the housing bubble burst in 2006 – more than they did during the Great Depression.  Yet prices in Washington, D.C. – Deception, INC.’s headquarters, of course – are up 4% over the last year, representing the only major metropolitan area to enjoy an uptick in prices.  For the record, according to data from the Census Bureau, suburban Washington touts seven of the top 20 highest-earning counties in the country.  New York and New Jersey – the Benefactors’ headquarters – have five counties in the top 20.  Prior to 2008, most of us had faith in the system – a system “too big to fail.”  However, as the illusion of financial stability started to fade – so, too, did our confidence. How could we have been so blind?  Well, without further ado, here are the six ways the most powerful moneymaking enterprise on Earth is able to LEGALLY con us out of our money. Con Game #1: Easy Credit Piling you up with debt is unequivocally the sun in which the Benefactors’ world rotates around. I’ve already given you all the facts. But here’s a tip for lawmakers… Until the middle class is expanding its wealth, too – in real dollars – the economy has absolutely no chance of ever regaining its past glory.  Enough said. Con Game #2: Pro Big-Bank Legislation  The subject matter here could fill an entire book.  But 1999’s repeal of the Glass Steagall Act, which was passed in 1933 to control a banks’ ability to speculate, looms incredibly large.  Likewise, policymakers’ 2004 decision to relax the 1975 Net Capital Rule was also instrumental in amassing great wealth at the top.  The rule acted as a wonderful safeguard for all of us by limiting the amount of debt Wall Street firms were allowed to carry – with the upper limit being about 12 times their total assets. However, when Capitol Hill gave the ‘okay’ to relax the rule, the Benefactors embarked on an unprecedented period of profiteering.  When Lehman Brothers and Bear Stearns collapsed, they were leveraged by over 30-to-1!  The biggest beneficiary of the watered-down standards was Goldman Sachs.  In 2006, its profits jumped by 70% over the prior year, to $9.5 billion – the biggest ever for a Wall Street firm.  It doled out an extraordinary $16.5 billion in compensation that year, which works out to an average of nearly $622,000 for each employee. Con Game #3: Favorable Tax Treatment  President George W. Bush rigged the estate tax by substantially increasing the amount of tax-free money someone can pass on to his heirs – from $1 million in 2001 to $3.5 million in 2009. The Obama administration has not restored the exemption, choosing instead to keep it at $3.5 million. Such policy only benefits the richest 2% of Americans. Even more suspicious, some of the country’s wealthiest hedge fund managers and private-equity fund managers are taxed at a rate of only 15% – LESS than what most of the middle class pays. They’re able to do it by exploiting a little-known tax loophole. After repeated attempts by Congress to close the loophole, both Democrats and Republicans have always chosen to preserve it. I believe the loophole has been preserved to ensure that the Benefactors’ generous campaign donations keep pouring in. My point here is that the Benefactors aren’t richer ONLY because their paychecks are growing…  They’re also richer because the government taxes them much less heavily than it once did. Con Game #4: The Stock Market Most of the assets held by the Benefactors are in stocks, bonds and other financial instruments.  As such, in 2009, when the market bounced back after the Great Recession, these ‘elite’ enjoyed staggering increases to their net worth.  By contrast, the cornerstone asset of middle-class America is its homes, the value of which is still plummeting four years after the economy’s peak. In 2007, the average CEO of the 350 largest publicly traded companies earned more than $12 million a year. A sizeable chunk of that income came via stock options, whose details are usually kept hidden from shareholders. Sometimes a CEO can create MASSIVE stock market gains simply by cutting jobs or announcing plans to slash wages. They even ‘backdate’ their stock options, which means getting compensated retroactively – when the options were worth the most. In the early 1990s, when the Financial Standards Accounting Board, which oversees accounting practices, tried to rein in ‘backdating,’ it was thwarted by a bipartisan coalition in the Senate. Con Game #5: Buying Political Influence  Why didn’t politicians do more in the face of the financial crisis, hiding behind rhetoric like, “Too big to fail?” It may have to do with Deception, INC.’s ability to buy political influence.  In 2009, the financial industry spent more than $300 million in its efforts to lobby Congress. Lobbying may be the ultimate proof of a rigged game because it’s here where we’re able to trace a direct connection between the Benefactors and lawmakers. Lobbyists are paid to persuade legislators to vote for legislation in favor of big corporations and banks. In the 1970s, only a small percentage – about 3% – of retiring members of Congress went on to become lobbyists. But by 2009, more than 30% did, as the profession grew incredibly lucrative. The Benefactors are very generous when it comes to buying influence – former chairs of congressional committees and subcommittees are paid upwards of $2 million a year to influence legislation in their former committees. Between 1998 and 2004 – when the Benefactors’ power was greatly intensifying – more than 2,200 former federal officials registered as lobbyists, according to the Center for Public Integrity. And according to the Center for Responsive Politics, spending on lobbyists escalated from $1.44 billion in 1998 to $3.47 billion in 2009. Still don’t believe Deception, INC. exists yet? Then try and explain why banks, realtors and insurers have 940 former federal employees – 70 of which are former members of Congress – on their payrolls as lobbyists.  Now can you appreciate just how much the deck is stacked against you? Con Game #6: Proprietary Technology Without question, technological shifts have played a MAJOR role in this relentless redistribution of wealth. For starters, the internet serves as the perfect venue for Deception, INC.-sponsored firms to reach greater audiences, and, in turn, earn a larger economic return. But for actual proof of a rigged game, look no further than the arrival of supercomputers, which have shockingly increased capital flows on Wall Street. And rewritten the rules of trading in the process.  Prior to 1998, million-share trading days were the norm on Wall Street.  But today, Wall Street trades a few BILLION shares every day – magnifying the possibilities for gains.  These supercomputers run fantastically sophisticated algorithms, too. And they work! For example, during the first quarter of 2010, four of the biggest banks in the United States – Goldman Sachs, JP Morgan Chase, Bank of America and Citigroup – had a ‘perfect quarter,’ with zero days of trading losses.  Wouldn’t it be nice to share such an advantage? Now, here’s where we zero in on our opportunity… You see, technological advantages have also led to the development of innovative new financial products – ones that usually have no appeal to everyday investors, like us. But for Deception, INC., these exotic creations are godsends – capable of spawning mind-boggling profits. I’m talking about derivatives. For the next seven to 10 years, the derivatives market represents absolution for the Benefactors – a way to exponentially expand their profit base without ever manufacturing, drilling, refining, exporting, importing, developing, building, or engineering a thing.  And regulators have already paved the way for this to happen…  You see, in September 2009, the leaders of the world’s largest economies met in Pittsburgh in what turned out to be perhaps the most significant G-20 Summit in history. In response to the financial crisis, the new, larger group – which proclaimed itself the guardian of the world economy – resolved to… “Work together to ensure that our fiscal, monetary, trade and structural policies are collectively consistent with more sustainable and balanced trajectories of growth.”  One of the G-20’s highest priorities was to rein in the massive $615 trillion derivatives market. Prior to the financial crisis, the Big Banks traded derivatives between themselves, with absolutely no oversight. Regulators were virtually blind to the TRILLIONS upon TRILLIONS of dollars running through the financial system. Meanwhile, the Benefactors made a fortune in this cryptic market. Deception, INC.’s richest fiefdom, for sure – the size of the derivatives market is equivalent to 41 times the United States’ GDP.  Recall, mortgage-backed securities – a tiny sliver of the larger derivatives market – are what precipitated the financial crisis. And the public outcry against these newfangled securities has been intense. For a while there, it even looked like regulators might pull the plug on the derivatives market altogether.  But after some passionate lobbying, the Benefactors ultimately won out.  (Was there ever any doubt?) In Pittsburgh, G-20 leaders agreed that… All standardized derivatives contracts should be traded on exchanges or electronic trading platforms by the end of 2012, at the latest.”  And when the Dodd-Frank Act – Public Law 111-203 – was signed into law by President Obama on July 21, 2010, the financial system was, in effect, rigged for Deception, INC. to control another decade of profits. Nearly the exact same legislation was passed in Europe, as well. The gears toward achieving this mandate are already in motion, handing us a monumental opportunity. SEC Chairman Mary L. Schapiro recently said… “The derivatives marketplace has grown dramatically over the past three decades to become enormous and truly international. Since the early 1980s, when the first swap agreements were negotiated, the global notional value of this marketplace has grown to just over $600 trillion. However, [until now] derivatives were largely excluded from the financial regulatory framework by the Commodity Futures Modernization Act of 2000.”

Again, understanding that capitalism must constantly be fed new markets to devour… the G-20 resolution put yet another market on a silver platter for the Benefactors. This market all but guarantees Deception, INC. of its next decade of profits.  Although passed a year ago, The Dodd–Frank Wall Street Reform and Consumer Protection Act just took effect – in July 2011.  In layman’s terms, under the legislation, by 2012 derivatives contracts will be forced to pass through an official exchange.  In doing so, a third party – an official clearinghouse – will assume the risk should one party default. In other words, Dodd-Frank makes certain that the irresponsible actions of AIG, which ignited the financial crisis, can never happen again. Recall, AIG underwrote the trillions of dollars in mortgage-backed securities during the housing boom.  Yet when their value crashed, the venerable insurance giant was unable to pay up. Under Dodd Frank, such an outcome becomes virtually impossible. As you’d expect, the banking industry’s biggest names dominate derivatives activity.  JP Morgan, Bank of America, Citibank, Goldman Sachs and HSBC Bank USA account for 96% of the total industry.  And they’re eyeing the derivatives market as a salvation of sorts in these lean times, as it generates some of the easiest profits in finance. For now, I’ve recommended that my readers face the sobering reality that policymakers, for whatever reason, took measures to preserve the Benefactors’ foremost cash cow. Until you do the same, your anger is likely to cloud the opportunity now sitting before you. Also, every solution I mention from this point forward is perfectly legal and safe to implement, too.
Course of Action #1:
Follow Deception, INC.’s Money
My analysts have identified an ingenious way to profit from Deception, INC.’s massive derivatives market without ever going within earshot of an actual derivative. So please take careful notice that within the past year, a milestone event occurred… A brand-new exchange was launched, exclusively trading the largest segment of the derivatives market. Only months old, early estimates put the potential value of the exchange in the neighborhood of $10 trillion. But why haven’t you heard about it? Why were there no cameras? No press? And no celebrities ringing the opening bell? Because the Benefactors don’t want you to know it exists. As I’ve been telling you, this market is the biggest moneymaking cog in Deception, INC.’s wheel.  It’s how the Benefactors plan to expand their profit base over the next seven years, at least. And the less you know about it, the less likely you are to influence public opinion against it. For now, forget about the fact that $12.8 billion in transactions passed through the exchange in its first week of trading and, instead, concentrate on the number ONE… As in, ONE tiny company runs the entire exchange, handling every single order over its brand-new electronic trading platform.  Forty-one banks are presently live on the platform, with heavyweights like Barclays Capital, Deutsche Bank and JP Morgan providing streaming prices.  The amount of capital firing across this cryptic market is staggering. And among the Goliaths there sits ONE small, virtually unheard of company facilitating Deception, INC.’s next decade of profits.  Imagine earning a cut on every trade. It’s hard to draw a historic comparison for such a unique event… But the Chicago Mercantile Exchange – facilitators of the largest futures and options exchange in the world – went public in 2002.  And the stock went from $39 to over $700.  Intercontinental Exchange – another proprietor of futures and over-the-counter exchanges – went public in late 2005 with a stock price of $26.  To date, it’s been as high as $185.  But making such comparisons to this hyper-unique opportunity isn’t really fair. You see… s a whole, the $615 trillion derivatives market dwarfs the futures, options and over-the-counter markets individually. he under-the-radar company executing the derivatives trades over its new electronic platform is tiny – only 1/30th the size of industry giants like Bank of America.  And… billions in unrealized trading revenue is still NOT priced into the stock. When combined, these three factors make for a potentially massive rise in the stock price. Realize that this didn’t happen overnight… The electronic platform was nine years in the making.  And this little company’s been an up-and-comer in international banking since the late 1990s.  I expect the coming months to mark a historic turning point for the company.  Shareholders could see their net worth explode. For investors with risk capital, this speculation has a real chance to make serious gains. You May Never See Anything Like it Again in Your Lifetime.  By now, I suspect you appreciate the rare nature of this occasion.  I can’t predict the future, but this may indeed be the only time it happens in our lifetime. That’s why I’d like to rush you an urgent report on this opportunity right away, called…How to Win a Rigged Game: Wall Street’s Underground Exchange Goes Live.  In the report, you’ll get all the details regarding how this innovative small-cap company flew under the radar on its way to dominating a brand new, multi-trillion-dollar electronic market. And how its shares could be set for one the biggest price moves of any stock – on any exchange – over the next seven to 10 months. The report also reveals why BlackRock – the newly crowned King of Wall Street – loaded its house account with 32 million shares of this company’s stock.  But perhaps most important… The report outlines how perfectly positioned the company is within the enormously lucrative derivatives market.  At the end of the day, how many chances do you truly get to make money at such an early stage of the game?  You know, when the profit potential is at its peak? I don’t want to tip my hand too much more, or I risk undermining the exhaustive research my team did to find this opportunity.  So please refer to the report…How to Win a Rigged Game:  Wall Street’s Underground Exchange Goes Live. I assure you that it includes all the critical information you need to take advantage of this milestone event, including the company’s ticker symbol. Give the research some consideration… I believe it holds every detail required to benefit from the unfolding events.  The best part is, you can review this research today by simply taking a risk-free trial subscription to my flagship monthly newsletter, The White Cap Report. When you accept this invitation, I’ll immediately give you access to the report. It took nearly a year to compile this research on Deception, INC. Specifically, finding out who the Benefactors are… what impact they’re having on our wealth… and what they’re planning to do next. Now that we’ve identified the Benefactors, we’re tracking their money flows.  With a virtual GPS on their cash, we’ll report where it’s heading every single month in The White Cap Report. The truth is, we’re already zeroing in on another opportunity with the potential to be even bigger than what’s happening with the Dodd-Frank legislation.

Course of Action #2:
Trade Like a Benefactor 


As much as my group is known for its progressive research, it’s also an advocate of innovative trading strategies – ones capable of generating entirely new streams of personal income. You see, my staff includes best-selling author and former New York Mercantile Exchange (NYMEX) market maker, Lee Lowell, who serves as the group’s Income Expert. I recently conducted an annual review of Lee’s track record and its results were extraordinary – a documented 96% win rate!  Last year, Lee recommended 27 trades, and 26 of them generated an average cash payment of roughly $500. Over a year’s time, Lee’s picks led to cash payouts of:

$450 from Verizon

$362 from Sunoco

$300 from DuPont

$500 from Electronic Arts

$300 from Home Depot

$300 from Dow Chemical

$400 from General Electric

$300 from JC Penney

$395 from International Paper

$350 from Best Buy

And that’s just a few of the big name, high-probability trades Lee has shown readers how to collect cash from.  For clarity’s sake, like the Benefactors, Lee only recommends using a strategy that can be ‘rigged’ in your favor…  With that in mind, you can imagine why I look forward to his internal performance audit every year – the results are all the proof Lee needs that his innovative strategies work.  In fact, I was astonished to see that in 2009 and 2010, Lee’s readers had the opportunity to collect anywhere between $11,806 and $47,225 depending on how much they chose to invest.  How could anyone turn down a cash infusion like that? When I talk about things like this, I’m always reminded of an email I received from one of Lee’s loyal readers named Barry Morris.  Barry said that he and his son, just average folks from South Carolina… not professional traders or Benefactors… collected an astounding $145,000 in 2009 using Lee’s strategies. That’s $12,083 a month!  I know a ton of recent college graduates who’d be overjoyed to earn that much in a year. You can find Lee Lowell’s columns in The White Cap Report by accepting my risk-free trial offer to the newsletter. If you choose to sign up, I’ll also give you immediate access to Lee’s two brand-new strategy reports… You’ve probably heard of my group’s Chief Investment Strategist, Louis Basenese.  He’s the market’s foremost innovation and technology expert.  And sleuthing-out innovation has been his life’s pursuit since helping handle over $1 billion in assets while on Wall Street.  Louis’ readers have recently had the opportunity to close out gains on up-and-coming innovators, like…

162% on APKT – a facilitator of lightning-fast internet solutions.

100% on ASYS – a manufacturer of wafers used in the solar industry.

107% on IDCC – a wireless technology firm with over 8,000 patents.

139% on TDSC – an ingenious 3-D printing company.

152% on IO – a seismic imaging company in the oil and gas industry.

Right now, Louis is urging readers to prepare, as the next wave of innovative technology swarms the market in the coming weeks. Wednesday, August 31, 2011 In Today’s Issue: Stock Market: The Case for Higher Prices… Good  News: The Commodity Price Cycle and S&P 500 Both on Track…  European  Recession: Will There Be One?  European Recession: Will There Be One?  The Leong Side of the Market, by George Leong, B. Comm. If you think we have it bad here, just take a glance at Europe, where investing in stocks has become a chore full  of patient and sleepless nights. In Germany, the most significant  country in the eurozone, the benchmark DAX is down over 25% since late July. Just  in one month! Things do not look promising. Stock markets across Europe are tanking and, as I have said,  Europe is not a place to park your capital  based on my global economic analysis. There was more evidence of an economic downfall in Europe after the European Union’s economic sentiment  index fell for the sixth straight time. Germany showed the biggest decline.  Without a recovery in Germany,  the eurozone is in trouble, but we know that. The reality is that growth around the world is stalling and  the fear is that it could worsen and drive another recession or deepen existing  recessions in many regions in Europe. And, with  the existing debt and deficit issues, it will be hard for the governments to  focus on driving growth. The aftermath could be several more years of economic  stalling in Europe. This is a big problem, as Europe has over 500 million people and is a major economic  zone.

September 1, 2011.

Why the European Union May Have Only a Week to Live: By Shah Gilani, Capital Waves Strategist, Money Morning.
The clock may be ticking on the future of the European Union (EU). After being shaken to its core by the sovereign debt crisis, the entire Eurozone now runs the risk of blowing up within a week. Germany’s highest court, the German Federal Constitutional Court, on Sept. 7 rules on the legality of German participation in the euro rescue fund that was established to bail out Greece. If the court rules that Berlin’s commitment to the European Financial Stability Facility(EFSF) goes against EU law, or worse, against the German constitution, the entire Eurozone could collapse. Think of the Eurozone as a minefield full of bombs that have long lay dormant, but are all still very active. Now, Germany’s court ruling – itself a single bomb timed to go off next Wednesday – could ignite a massive chain reaction. Germany: The Eurozone’s Bomb Squad: Peripheral Eurozone countries like Portugal, Ireland, Greece, Spain, and Italy (the PIIGS) are in serious trouble and European banks face monumental liquidity and balance sheet issues.  So far, only Germany’s singular fiscal conservativism and economic strength have kept the EU from self-destructing. But now the Eurozone’s only legitimate bomb squad may be hanging up its lead-suits, pliers, and contagion containers. What’s at issue for the Constitutional Court is whether Berlin broke the EU’s Maastricht Treaty, which unequivocally stipulates that member states cannot assume each other’s debts. And, more germane to German citizens and the center-right coalition government, will be the Court’s ruling on whether German Chancellor Angela Merkel’s decision to fund the bailout facility circumvented constitutional requirements to put such fiscal matters before the German parliament.  And while the court isn’t ruling directly on the EU’s currency – or Merkel’s support of it – the decisions rendered will have consequences for the euro’s future and by extension, the EU as a whole.  
Wednesday, August  31, 2011 5:33 PM.  Last April, Goldman Sachs settled with the SEC for $500 million over the synthetic collateralized debt obligation (CDO), Abacus. Even then, we predicted the mortgage lawsuits would get worse. We’ve written about the topic several times in these pages, so I will summarize the ordeal today…The SEC alleged Goldman sold investors a CDO without disclosing that hedge fund Paulson & Co. helped design the CDO and was shorting it. Buyers of the Abacus CDO (ACA Financial and German bank IKB) lost nearly $1 billion as mortgages plummeted. A synthetic CDO, by definition, must have someone on the long and short side. It is simply a bet on the direction of a pool of underlying mortgages. The buyers (huge financial institutions) should have known an investor was taking the other side of the bet. The Goldman lawsuit was just the beginning, we argued. Once the investigations moved on to CDOs containing real mortgages, we’d see real damage…wow, it seems clear to me suing Goldman about this issue – a case involving a synthetic CDO that the regulator will probably lose – is simply raising a red herring. Left unexamined is the much larger issue: the extraordinary amount of fraud in mortgage underwriting between 2004 and 2007. – April 21, 2010 S&A Digest.    The real fireworks will come in the investigations over CDOs containing bona fide mortgages. These vehicles were completely riddled with fraud and insider dealing. Then, almost half of them were sold to Fannie and Freddie, now owned by Uncle Sam.   When you defraud the sovereign, watch out. We think the fines are going to get a lot bigger… and we’d be surprised if Morgan Stanley survives. Interestingly, we also think the amount of fraud in the mortgage security industry means it’s unlikely the insurance on these bonds will remain in force. And that means the $30 billion or so of implied losses mortgage insurer MBIA faces may never be paid out. That’s a big number for a stock with a current market value of only $1.35 billion and assets of $25 billion. – July 16, 2010 S&A Digest 
In June, Bank of America announced it would pay $8.5 billion to settle claims from investors who lost money on mortgage-backed securities they bought before the crash. A group of investors (including giants like Black Rock, PIMCO, and MetLife) alleged mortgages they purchased from Countrywide (which Bank of America bought in 2008 for $4 billion) were filled with loans that didn’t meet the stated quality standards. The investors also alleged Countrywide didn’t keep accurate records of the loans.
Yesterday was the last day to file objections to the Bank of America settlement. And there’s a long list of objectors. Goldman Sachs said the settlement lacks enough information to prove all “similarly situated” investors were treated equally. The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, are also objecting to the settlement… as are dozens of other mortgage investors.
Why the objections? We don’t know for certain… But we’d guess the objectors also took huge write downs on mortgages they purchased from Countrywide. And they want a higher recovery.
This week, U.S. Bancorp, a trustee for a $1.75 billion Countrywide mortgage pool, separately sued Bank of America to make it buy back the mortgages. AIG, the insurer, is also suing Bank of America for $10 billion in a separate case involving mortgage-backed securities.
Bank of America has huge potential liabilities with these outstanding lawsuits. And the bank doesn’t make any money… It lost $3.2 billion over the past three years. It’s had negative net income for the past two years. That’s why it’s scrambling to raise capital. The bank took 
$5 billion from Warren Buffett. It sold half its stake in China Construction Bank for around $8 billion.
Today, news arose that Bank of America will sell its correspondent mortgage business (through which it purchases loans from smaller lenders, sells them, then continues servicing them). Bank of America decided to exit the business about six weeks ago. The business employs more than 1,000 people. And it was responsible for 47% of Bank of America’s mortgage originations in the first quarter of 2011. It is a huge retreat,” said Guy Cecala, publisher of the trade journal Inside Mortgage Finance. “Exiting correspondent altogether will reduce their volume significantly.”Europe in Limbo as Asian Fear Rises:  The Leong Side of the Market, by George Leong, B. Comm.
http://www.profitconfidential.com/gurus/  September, 2011The situation in Europe continues to focus on the debt and growth, along with the funding. And, until it calms down in Europe, markets will likely remain shaky on this side of the Atlantic. There is talk that Greece may need to leave the  European Union due to its failure to satisfy financial targets set in place as  a condition for receiving emergency capital from its European neighbors. I thought this could be a possibility given that I did not believe that the stronger nations of Germany and France would want to continue to fund the poor countries. The reality is that growth in both Germany and France has suffered with the focus squarely on saving the PIGS (Portugal, Ireland, Greece,  and Spain). In my global economic analysis, this trend cannot continue much longer or Europe will falter and fall  into a deeper or new recession. The problem is that ousting Greece would not be  viewed as a positive signal to the rest of the world, as it could signal a  domino effect that could lead to other countries also leaving, which is not  what you want to see. The European Central Bank (ECB) maintained its benchmark  lending rates at 1.50% at the Thursday meeting. But the situation is cloudy in  the eurozone, after the ECB cut its gross domestic product (GDP) growth  forecast. Of course, this is not a surprise given the recent downgrades in Europe. Morgan Stanley cut its global GDP forecasts for 2011 and 2012 and added that the U.S.  and the eurozone were “dangerously close to a recession.” The Money Masters: Behind the Global Debt Crisis – by Adrian Salbuchi. New Dawn Magazine No. 128 (September-October 2011)In fact, if we look at matters in their proper perspective, we will see that most national economies are pretty much intact, in spite of having been badly bruised by the financial collapse. It is Finance that is in the midst of a massive global collapse, as this Model of “Ponzi” Finance has grown into a sort of malignant “cancerous tumour” that has now “metastasised,” threatening to kill the whole economy and social body politic, in just about every country in the world, and certainly in the industrialised countries. The above comparison of today’s financial system with a malignant tumour is more than a mere metaphor. If we look at the figures, we will immediately be able to see signs of this financial “metastasis.” For example, The New York Times in their 22 September 2008 edition explains that the main trigger of the financial collapse that had exploded just one week earlier on 15 September was, as we all know, mismanagement and lack of supervision over the “Derivatives” market. The Times then went on to explain that twenty years earlier, in 1988, there was no derivatives market; by 2002 however, Derivatives had grown into a global 102 trillion Dollar market (that’s 50% more than the Gross Domestic Product of all the countries in the world, the US, EU, Japan and BRICS nations included), and by September 2008, Derivatives had ballooned into a global 531 trillion Dollar market. That’s eight times the GDP of the entire planet! “Financial Metastasis” at its very worst. Since then, some have estimated this Derivatives global market figure to be in the region of One-Quadrillion Dollars… Naturally, when that collapse began, the caretaker governments in the US, European Union and elsewhere, immediately sprang into action and implemented “Operation Bail-out” of all the mega-banks, insurance companies, stock exchanges and speculation markets, and their respective operators, controllers and “friends.” Thus, trillions upon trillions of Dollars, Euros and Pounds were given to Goldman Sachs, Citicorp, Morgan Stanley, AIG, HSBC and other “too big to fail” financial institutions… which is newspeak for “too powerful to fail”, because they hold politicians, political parties and governments in their steel grip. All of this was paid with taxpayer dollars or, even worse, with uncontrolled and irresponsible issuance of Public Money bank notes and treasury bonds, especially by the Federal Reserve Bank which has, in practice, technically hyper-inflated the US Dollar: “Quantitative Easing” they call it, which is Newspeak for hyperinflation. So far, however, like the proverbial Naked Emperor, nobody dares to state this openly. At least not until some “uncontrolled” event triggers or unmasks what should by now be obvious to all: Emperor Dollar is totally and completely naked.7 When that happens, we will then see bloody social and civil wars throughout the world and not just in Greece and Argentina. By then, however, and as always happens, the powerful bankster clique and their well-paid financial and media operators, will be watching the whole hellish spectacle perched in the safety and comfort of their plush boardrooms atop the skyscrapers of New York, London, Frankfurt, Buenos Aires and Sao Paulo…   By Jack Barnes, Global Macro Trends Specialist, Money Morning , October 10, 2011:  Frankfurt-based Deutsche Bank AG (NYSE: DB) is about to be critically wounded by the European banking crisis. So it’s time to sell Deutsche Bank AG (**), before the region’s financial system falls apart. Europe’s Coming Capital Crunch Many European banks don’t have enough money to survive a Greek default. They hold huge amounts of their home sovereign’s debt, as well as debt of their troubled Eurozone neighbors. Any write-down of those holdings will slam their balance sheets.
These banks were already overleveraged when the financial crisis started in 2007, and they have relied on outside sources like the United States to maintain core capital ratios.
In the 2008 crash, the European banks turned to the U.S. Federal Reserve for trillions of dollars of liquidity injections. They also used sources like U.S. money market funds for short-term loans – commercial paper that matures in less than 270 days – to cover capital loaned out at longer maturities. In May 2011, U.S. money market funds had an average 40% of holdings in European commercial bank paper.
But then U.S. banks, afraid of the unfolding European sovereign debt drama, let these short-term loans mature. This brought the capital back home and took an estimated $350 billion in liquidity out of the European banking system.
   October 12, 2011. By Keith Fitz-Gerald, Chief Investment Strategist, Money Morning. Do you want to know the real reason banks aren’t lending and the PIIGS have control of the barnyard in Europe? It’s because risk in the $600 trillion derivatives market isn’t evening out. To the contrary, it’s growing increasingly concentrated among a select few banks, especially here in the United States. In 2009, five banks held 80% of derivatives in America. Now, just four banks hold a staggering 95.9% of U.S. derivatives, according to a recent report from the Office of the Currency Comptroller. The four banks in question: JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C), Bank of America Corp. (NYSE: BAC) and Goldman Sachs Group Inc. (NYSE: GS). Derivatives played a crucial role in bringing down the global economy, so you would think that the world’s top policymakers would have reined these things in by now – but they haven’t. Instead of attacking the problem, regulators have let it spiral out of control, and the result is a $600 trillion time bomb called the derivatives market. Think I’m exaggerating? The notional value of the world’s derivatives actually is estimated at more than $600 trillion. Notional value, of course, is the total value of a leveraged position’s assets. This distinction is necessary because when you’re talking about leveraged assets like options and derivatives, a little bit of money can control a disproportionately large position that may be as much as 5, 10, 30, or, in extreme cases, 100 times greater than investments that could be funded only in cash instruments. The world’s gross domestic product (GDP) is only about $65 trillion, or roughly 10.83% of the worldwide value of the global derivatives market, according to The Economist. So there is literally not enough money on the planet to backstop the banks trading these things if they run into trouble. Short-term borrowing costs would skyrocket and liquidity would evaporate. That would cause a ricochet across the Atlantic as the institutions themselves then panic and try to recover their own capital by withdrawing liquidity by any means possible. And that’s why banks are hoarding cash instead of lending it. The major banks know there is no way they can collateralize the potential daisy chain failure that Greece represents. So they’re doing everything they can to stockpile cash and keep their trading under wraps and away from public scrutiny.  What really scares me, though, is that the banks  think this is an acceptable risk because the odds of a default are allegedly smaller than one in 10,000.  But haven’t we heard that before?  Although American banks have limited their exposure to Greece, they have loaned hundreds of billions of dollars to European banks and European governments that may not be capable of paying them back.  According to the Bank of International Settlements, U.S. banks have loaned only $60.5 billion to banks in Greece, Ireland, Portugal, Spain and Italy – the countries most at risk of default. But they’ve lent $275.8 billion to French and German banks.  And undoubtedly bet trillions on the same debt.  There are three key takeaways here: There is not enough capital on hand to cover the possible losses associated with the default of a single counterparty – JPMorgan Chase & Co. (NYSE: JPM), BNP Paribas SA (PINK: BNPQY) or the National Bank of Greece (NYSE ADR: NBG) for example – let alone multiple failures. That means banks with large derivatives exposure have to risk even more money to generate the incremental returns needed to cover the bets they’ve already made. And the fact that Wall Street believes it has the risks under control practically guarantees that it doesn’t. October 14, 2011. By Shah Gilani, Capital Waves Strategist, Money Morning. I’ve already expressed my desire to embrace the Occupy Wall Street movement. I said last week that I would join in whole-heartedly if I knew exactly what the protesters were trying to achieve.  But I don’t know – and I’m not convinced they do, either. Still, that doesn’t mean we should dismiss them entirely. After all, there are millions of Americans who sense there’s something terribly wrong with our capitalist system, but they can’t pinpoint exactly what it is either. But I can.  Bad actors have done bad things to good institutions and our capitalist system. Today, I’m going to let you in on who three of those bad actors are. You see, part of the problem is that when we think of the “bad guys” on Wall Street, or in Washington for that matter, we don’t often think of specific people. We talk about “them” as faceless men we might imagine sitting in luxurious high-rises chewing on cigars and laughing as they rake in millions, or even billions of dollars on the backs of hardworking Americans.  I intend to fix that. I want to shed light on the faces of the people who are gaming the system and lay out before you the tools they’re using to get away with it. So, I’m going to start today with three of the biggest perpetrators of the mess we’re in. The Three Bears. There are hundreds of bad actors on Wall Street, but three in particular tell the inside story of how appallingly corrupt our country has become. They are: Robert Rubin, who spent 26 years at Goldman Sachs Group Inc. (NYSE: GS), before becoming Treasury Secretary in the Clinton administration. Lawrence Summers, who came out of the World Bank and was Deputy Secretary of the Treasury under his pal Rubin before becoming Treasury Secretary himself in 1999. And Phil Gramm, once a practicing economist who served as a Republican Senator for Texas from 1985 to 2002. These are the men who – with help of then-Federal Reserve Chairman Alan Greenspan – interfered with the Commodities and Futures Trading Commission (CFTC), an important regulatory body, to squash any regulation of derivatives. And now the notoriously murky derivatives market, which was hugely responsible for the 2008 financial crisis, has grown into a $600 trillion trouble spot for the economy. This group of very influential and powerful men made sure there was no oversight of derivatives products and markets.None. While that was an incredible gift to Wall Street’s biggest banks and hedge funds, the Three Bears (I call them that because their actions drove us into the systemic economic bear market from which we’re still struggling to emerge) weren’t nearly done.  The Beginning of the End.  in April 6, 1998 Citicorp and Travelers Group announced that they would merge into a single company.  But there was a problem.  At the time, such a merger would have violated the Glass Steagall Act. If you’re not familiar with it, the Glass Steagall Act is – or rather was – a piece of Depression-era legislation that established the Federal Deposit Insurance Corp. (FDIC) and mandated the separation of commercial banks, investment banks, and insurance companies. It incorporated other practical and prudent regulations enacted to safeguard investors and the public , as well.  But , lessons learned from the Depression were eventually forgotten – or maybe more precisely, steamrolled by a sweeping deregulatory movement that took root in 1980.  On the day of the announced combination, Traveler’s chairman, Sandy Weill, addressed impediments to the merger in the New York Times, noting that current law would allow the new Citigroup Inc. (NYSE: C) time to divest itself of assets in order to comply with Glass-Steagall.  However, ominously he added: “We are hopeful that over time the legislation will change.”  Just one year later, it did. The same powerful group of influence-peddling government insiders overturned Glass-Steagall in November 1999, so the illegal merger didn’t have to be reversed. The law that obliterated the prudent separation of FDIC-backed commercial banks and swing-for-the-fences investment banks became known as the Gramm-Leach-Bliley ActThis act is what paved the way for giant, financial super firms that are so intertwined in the financial markets they’re now all considered “too-big-to-fail.” In Eerie Epilogue.  So what happened to our three players? Were they penalized or held accountable for the undermining of our economy and the implosion of markets? No. They were rewarded. Robert Rubin went to work for the new Citigroup as a senior advisor of the firm. Rubin made $126 million in cash and stock during his eight years of service, while the bank leveraged itself up by using depositor money. It had to be bailed out in 2008.  Lawrence Summers reportedly took some $20 million from D.E. Shaw & Co., a giant hedge fund that dabbles in derivatives, for a two-year stint doing something nobody at the firm could confirm.  And Phil Gramm, the venerable Texas senator, upon retiring from that powerful position, immediately became vice chairman of the investment bank division of UBS AG (NYSE: UBS).  Yes, UBS – the same Swiss bank that in 2008 had to be backstopped by the Swiss National Bank when its overleveraged and derivatives-laden balance sheet imploded. The same bank that later paid $780 million to settle criminal charges over its conspiracy to defraud the Internal Revenue Service (IRS) and federal government of legitimately owed taxes.  These are the kinds of things that are taking place every day thanks to Wall Street’s influence over our executive and legislative branches of government. And you better believe that average Americans and the Occupy Wall Street protestors can sense that, and they know they should be angry. They just can’t put their finger on why. I can because I’m a Wall Street guy who spent 30 years working within the system. I studied economics and started my career as a trader on the floor of the Chicago Board of Options Exchange (CBOE). I ran the futures and options division of a giant international money-center bank. I’ve done everything from trading bonds and mortgage-backed securities to running my own hedge funds. And I have hundreds of stories full of corruption and greed – just like this one.  Not everyone on Wall Street is a bad actor. Most of the professionals working in the capital markets across America are good and honest people. But, there are kingpins and kingmakers whose greed is so disgusting they will sink America for their own fistful of dollars.  It’s time we had better insights into what’s really going on and time to indict some of these bad actors. Editor’s NoteMoney Morning Capital Waves Strategist and retired hedge-fund manager Shah Gilani became a national icon in 2008, as he dissected the shady workings of Wall Street, uncovering how the greed of a few brought down the economy of our entire country. He’s since launched a new publication called Wall Street Insights & Indictments. His goal simply is to show you what’s really going on in the markets, so you can “know the story” and make some money.                                                                                                                                                                     October 13, 2011. THE CLINKHedge-Fund Boss Gets 11 Years. Former hedge-fund tycoon Raj Rajaratnam has been sentenced to 11 years in prison and fined $10 million for insider trading, the longest-ever such sentence. Rajaratnam, the founder of Galleon Group, got tips from a network of insiders in Goldman Sachs, Google, Intel, and other companies. Prosecutors say he made $72 million from insider trading, while Rajaratnam’s lawyers say it was only $7.4 million. The Economist says good riddance to the “know-it-all” billionaire—and praises a new boon for regulators looking to crack down on trading abuses.  By Bob Van Voris, Patricia Hurtado and David Glovin  –  Oct 12, 2011 11:00 PM CT,  Thu Oct 13 04:00:00 GMT 2011:  Galleon Group LLC’s Raj Rajaratnam Peter Foley/Bloomberg.  Raj Rajaratnam, co-founder of Galleon Group LLC.  Raj Rajaratnam, co-founder of Galleon Group LLC. Photographer: Peter Foley/Bloomberg Oct. 13 (Bloomberg) — Douglas Burns, a formal federal prosecutor, talks about Galleon Group LLC co-founder Raj Rajaratnam’s sentencing today for masterminding the biggest hedge-fund insider trading scheme in U.S. history. Burns speaks with Erik Schatzker and Stephanie Ruhle on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)  Oct. 13 (Bloomberg) — Galleon Group LLC’s Raj Rajaratnam will be sentenced today for masterminding the biggest hedge-fund insider trading scheme in U.S. history, facing a federal judge who has broad discretion in setting his punishment. Sarah Eisen reports on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg).  Galleon Group LLC’s Raj Rajaratnam will be sentenced today for masterminding the biggest hedge-fundinsider trading scheme in U.S. history, facing a federal judge who has broad discretion in setting his punishment. U.S. District Judge Richard Holwell in Manhattan presided over the jury trial in which Rajaratnam was convicted of 14 counts of securities fraud and conspiracy. He will consult federal sentencing guidelines and his own “gut feeling,” one legal expert said. Read it at Bloomberg. These Three Men Represent Everything That’s Wrong with Wall Street byShah Gilani I’ve already expressed my desire to embrace the Occupy Wall Street movement. I said last week that I would join in whole-heartedly if I knew exactly what the protesters were trying to achieve. But I don’t know – and I’m not convinced they do, either. Still, that doesn’t mean we should dismiss them entirely. After all, there are millions of Americans who sense there’s something terribly wrong with our capitalist system, but they can’t pinpoint exactly what it is either. But I can. Bad actors have done bad things to good institutions and our capitalist system. Today, I’m going to let you in on who three of those bad actors are. You see, part of the problem is that when we think of the “bad guys” on Wall Street, or in Washington for that matter, we don’t often think of specific people. We talk about “them” as faceless men we might imagine sitting in luxurious high-rises chewing on cigars and laughing as they rake in millions, or even billions of dollars on the backs of hardworking Americans. I intend to fix that. I want to shed light on the faces of the people who are gaming the system and lay out before you the tools they’re using to get away with it. So, I’m going to start today with three of the biggest perpetrators of the mess we’re in. The Three Bears.There are hundreds of bad actors on Wall Street, but three in particular tell the inside story of how appallingly corrupt our country has become. They are: Robert Rubin, who spent 26 years at Goldman Sachs Group Inc. (NYSE: GS), before becoming Treasury Secretary in the Clinton administration. Lawrence Summers, who came out of the World Bank and was Deputy Secretary of the Treasury under his pal Rubin before becoming Treasury Secretary himself in 1999. And Phil Gramm, once a practicing economist who served as a Republican Senator for Texas from 1985 to 2002. These are the men who – with help of then-Federal Reserve Chairman Alan Greenspan – interfered with the Commodities and Futures Trading Commission (CFTC), an important regulatory body, to squash any regulation of derivatives.And now the notoriously murky derivatives market, which was hugely responsible for the 2008 financial crisis, has grown into a $600 trillion trouble spot for the economy.This group of very influential and powerful men made sure there was no oversight of derivatives products and markets. None. While that was an incredible gift to Wall Street’s biggest banks and hedge funds, the Three Bears (I call them that because their actions drove us into the systemic economic bear market from which we’re still struggling to emerge) weren’t nearly done. The Beginning of the End On April 6, 1998 Citicorp and Travelers Group announced that they would merge into a single company. But there was a problem. At the time, such a merger would have violated the Glass Steagall Act. If you’re not familiar with it, the Glass Steagall Act is – or rather was – a piece of Depression-era legislation that established the Federal Deposit Insurance Corp. (FDIC) and mandated the separation of commercial banks, investment banks, and insurance companies. It incorporated other practical and prudent regulations enacted to safeguard investors and the public , as well. But, lessons learned from the Depression were eventually forgotten – or maybe more precisely, steamrolled by a sweeping deregulatory movement that took root in 1980. On the day of the announced combination, Traveler’s chairman, Sandy Weill, addressed impediments to the merger in the New York Times, noting that current law would allow the new Citigroup Inc. (NYSE: C) time to divest itself of assets in order to comply with Glass-Steagall. However, ominously he added: “We are hopeful that over time the legislation will change.”Just one year later, it did.The same powerful group of influence-peddling government insiders overturned Glass-Steagall in November 1999, so the illegal merger didn’t have to be reversed. The law that obliterated the prudent separation of FDIC-backed commercial banks and swing-for-the-fences investment banks became known as the Gramm-Leach-Bliley Act. This act is what paved the way for giant, financial super firms that are so intertwined in the financial markets they’re now all considered “too-big-to-fail.” An Eerie Epilogue So what happened to our three players? Were they penalized or held accountable for the undermining of our economy and the implosion of markets? No. They were rewarded. Robert Rubin went to work for the new Citigroup as a senior advisor of the firm. Rubin made $126 million in cash and stock during his eight years of service, while the bank leveraged itself up by using depositor money. It had to be bailed out in 2008. Lawrence Summers reportedly took some $20 million from D.E. Shaw & Co., a giant hedge fund that dabbles in derivatives, for a two-year stint doing something nobody at the firm could confirm. And Phil Gramm, the venerable Texas senator, upon retiring from that powerful position, immediately became vice chairman of the investment bank division of UBS AG (NYSE: UBS). Yes, UBS – the same Swiss bank that in 2008 had to be backstopped by the Swiss National Bank when its overleveraged and derivatives-laden balance sheet imploded. The same bank that later paid $780 million to settle criminal charges over its conspiracy to defraud the Internal Revenue Service (IRS) and federal government of legitimately owed taxes. These are the kinds of things that are taking place every day thanks to Wall Street’s influence over our executive and legislative branches of government. And you better believe that average Americans and the Occupy Wall Street protestors can sense that, and they know they should be angry. They just can’t put their finger on why. I can because I’m a Wall Street guy who spent 30 years working within the system. I studied economics and started my career as a trader on the floor of the Chicago Board of Options Exchange (CBOE). I ran the futures and options division of a giant international money-center bank. I’ve done everything from trading bonds and mortgage-backed securities to running my own hedge funds. And I have hundreds of stories full of corruption and greed – just like this one. Not everyone on Wall Street is a bad actor. Most of the professionals working in the capital markets across America are good and honest people. But, there are kingpins and kingmakers whose greed is so disgusting they will sink America for their own fistful of dollars. It’s time we had better insights into what’s really going on and time to indict some of these bad actors. By Shah Gilani.Oct 14, 2011. EU Finance Summit Awash in Crises. Oct 26, 2011 12:46 PM EDT.  Europe’s leaders finally admit that something must be done with the continent’s banks. Europe’s dirty secret is that its banks have long been even more of a mess than America’s—they were among the biggest investors in America’s toxic subprime assets, and then went big time into the now-toxic bonds of over-indebted states; hence the 62 percent plunge in the Euro Stoxx Financials Index since March, compared with minus-21 percent for the Dow Jones financials. France, which probably has the shakiest banks of any major European economy, to this day has refused to force them to recapitalize and shrink. The plan, as leaked to the Financial Times today, involves a $140 billion bank bailout (though the IMF and others estimate recapitalization needs to be much higher). But it’s a weak plan, full of vague “shoulds” and “oughts” that will likely leave too many loopholes for the banks and their investors to evade forced recapitalization and the absolutely necessary debt-to-equity swaps. The way the bailouts are set up now, they could allow France and others to pass the cost of bank bailouts to Europe’s taxpayers, potentially making the debt crisis worse. Third, in order to prevent contagion to other over-indebted countries, such as Italy and Spain, outlines are emerging for a plan to issue “bond insurance.” Here’s how it works: a bailout fund, possibly leveraged to as high as 2 trillion euros, would cover the first 20 percent or so of any losses by investors on bonds issued by individual European countries. That plan, first put forward by German financial-sector lobbyists, could end up expensive for taxpayers. Bond insurance makes sense, but the cheaper—and more effective—alternative would be not to cover any first loss on any bond, but provide only a kind of catastrophic risk insurance for the worst defaults. That would put a floor on potential losses—and raise bond prices—at a far lower risk to Europe’s taxpayers, says Achim Dübel, a German bond-market expert who developed the plan. Fourth, European leaders are trying to show they’re a little more serious about cutting deficits and lowering their debts. Germany and France are leaning on Italy, whose $2.5 trillion national debt is the world’s third highest after America’s and Japan’s, and whose government bonds are stable only because the ECB is massively buying them. After Greece, Italy is another poster child for what’s wrong with the European Union. The moment the ECB started intervening in the markets to support Italian bonds, Prime Minister Silvio Berlusconi backed off on a set of planned reforms that would have started to get Italy’s debt under control. It’s an open secret that Berlin would prefer Berlusconi out and a new government in power to push through a backlog of economic reforms that would allow Italy to regain the confidence of investors. Perhaps taking the hint, Berlusconi today started talking about early elections. Italy illustrates perfectly the deeper crisis, which the current plans don’t solve. Many of Europe’s semi-socialist governments simply do not know how to roll back spending, and have been even less eager to pass the kinds of market-opening economic reforms that would raise growth and make it easier to pay back debt. France, which together with its wobbly banks is the elephant in the room of the euro crisis, has never passed a serious reform to its pensions, civil service, or employment laws in the last 60 years. Greece, despite the crisis, has barely even begun to privatize or start collecting back taxes. The problem is that once any comprehensive bailout deal is signed, power will shift back to the debtors, as Europe has no mechanism to force a Sarkozy or Berlusconi to reform. The paradox, therefore, is that without the pressure of the current crisis, the much deeper crisis will continue to fester.  (Stefan Theil is Newsweek’s Berlin bureau chief and covers European politics, business, and economics. He has reported from more than 20 countries and written for Foreign Policy, the Financial Times, The New Republic, Frankfurter Allgemeine Zeitung, and Die Welt.) For inquiries, please contact The Daily Beast at editorial@thedailybeast.com. Without warning, Lloyd’s – the world’s oldest insurance market – announced that it has withdrawn its money from European banks. The reason? According to Lloyd’s, the banks are in danger of failing as Europe’s debt crisis continues to intensify. The company’s Finance Director, Luke Savage, put it simply: “If you’re worried the government itself might be at risk, then you’re certainly worried the banks could be taken down with them.” Which European governments is Lloyd’s talking about? They’re not saying.  But it IS interesting to note that Lloyd’s didn’t just withdraw its money from Greek banks; it withdrew its money from banks all over Europe! One thing you can be sure of, though: When the world’s oldest insurance company…A firm that for 323 years has made its living by accurately calculating the odds of future disasters…When that company suddenly takes its money and runs, it’s a MASSIVE red flag for investors – a clear sign that the beginning of the end is near! Lloyd’s has every reason to worry. In addition to the government debt crisis that’s threatening to destroy European banks, a huge credit crisis is spreading across the continent, as well. Spanish and Italian banks are rejecting massive numbers of loans and charging customers more as the sovereign debt crisis continues to drive their own borrowing cost higher. Any way you look at it, this shrinking of European credit markets is the worst kind of downward spiral: The government debt crisis is making it harder and more expensive for banks to borrow money; the banks are passing those higher costs along to borrowers. Corporations have to pay more to borrow; their cost of doing business is rising. Consumers can’t or won’t borrow at higher rates, so corporate earnings plunge. As corporate earnings evaporate, the taxes they pay also plummet. Falling tax revenue cause the government’s deficits to explode higher, driving the banks’ cost of borrowing even higher. And so, the death spiral continues… My urgent online video
will show you what to do right now… If you think Europe’s woes aren’t going to spill over onto our shores – THINK AGAIN! 
In fact, we believe that the United States is about to get slammed. In some key aspects  the U.S. is now in WORSE shape  than Brazil, Russia, Greece or Spain have ever been. Consider the high-risk gambles that super-investor Warren Buffett calls “financial weapons of mass destruction.” I’m talking about special kinds of investments called “derivatives.” They were a major cause of the real estate and debt crisis that nearly wiped out all of our largest banks in 2008 — along with the entire U.S. economy. Russia’s banks never exposed themselves to large amounts of these financial time bombs.  Neither did Brazil’s banks. And you’d think that, after the 2008 meltdown, U.S. banks would have learned their lesson. But you’d be wrong. According to the Comptroller of the Currency, a division of the U.S. Treasury Department — U.S. banks held $176 trillion in derivatives at the height of the debt crisis in 2008. Today, U.S. banks hold $244 trillion in derivatives — nearly 40% more.  That fact alone places the U.S. in greater danger than many other countries, past or present. U.S. debt and obligations are now OVER $120 TRILLION! America is also in great danger for another big reason. Washington is now sitting on the largest pile of debt in the history of civilization: About $14.5 trillion and counting. They are the men and women who directly advised presidents of both major parties, including President Obama, and all of them have since departed from their office. They recently wrote that that the next debt crisis could, and I quote “Dwarf 2008!” That’s an absolutely shocking assertion: In 2008, Wall Street came within a hair of a massive, devastating meltdown. Virtually ALL of our largest banks were pushed to the brink of failure. The entire country was only a few hours away from a fatal collapse.  Now, these ten former White House advisors are warning that this next debt crisis could dwarf the last one. Why? What could cause that? They say it’s precisely the monumental event I just told you about: The fact that one day foreigners may simply stop lending more of their money to the United States. And these ten former presidential advisers are not the only ones ringing the alarm bells. Senator Mark Warner says, “We’re approaching financial Armageddon.” Senator Joe Manchin calls this crisis “A fiscal Titanic.” Admiral Mike Mullen, the chairman of the Joint Chiefs of Staff, is warning that this crisis is “the biggest threat to our national security.” Economist Robert Samuelson warns that this crisis has the power to trigger “An economic and political death spiral.” Democrat Erskine Bowles, who headed up the president’s deficit commission, warns that this crisis is “like a cancer; it’s truly going to destroy the country from within.” Senator Mike Crapo says it is “a threat to not just our way of life, but to our national survival.” It has the power to “ … guarantee that this nation becomes a second-rate power with less opportunity and less freedom.” And David Walker — the former U.S. Comptroller General and director of the Government Accountability Office says: “The bottom line is: We’re not Greece. But we could end up with the same problems!”  And mind you, these men are not extremists. They have nothing to gain by trying to scare you. They are merely following the facts to their logical conclusion. That’s what I’ve done in this report. The warnings I’ve given you are based on nothing more — and nothing less — than economic reality and historical fact.  My research team and I have simply crunched the numbers and let the chips fall where they may — just like we did when we issued “D” ratings on nearly every big bank and savings and loans that subsequently failed. Just like we did when we gave a “C” rating to the United States. We have no political axe to grind. We are not beholden to Republicans, Democrats, or any other political party. Nor do we owe allegiance to Wall Street or any of the thousands of banks, companies and countries that we rate.  In fact, most of them would probably prefer that we just kept our mouths shut. One giant company even threatened my life by saying “Weiss had better shut up or get a body guard.” But to quote Harry Truman, “I never give them hell. I just tell the truth and they think it’s hell.” Our loyalty is with the people — consumers, savers, investors and everyday citizens. Martin D. Weiss, Ph.d. Publisher,Safe Money Investor Service; 15430 Endeavour Drive Jupiter, FL 33478, 800-236-0407, 561-625-6685 (Fax). November 4, 2011. BShah Gilani, Capital Waves Strategist, Money Morning Did you hear the story about MF Global?  No, not the headlines about its bankruptcy – the real story. If you haven’t heard it yet, it goes something like this. MF Global became a primary dealer only eight months ago.  “Primary dealer” is an elite status. It means the firm is one of only 22 government bond dealers that trades directly with the Federal Reserve’s New York trading desk. Only, the Federal Reserve doesn’t regulate or oversee MF Global, the Commodities Futures Trading Commission (CFTC) does – or rather is supposed to. But, even more incongruously, the CFTC isn’t the first overseer of MF Global . It ceded that responsibility to the CME Group Inc. (Nasdaq: CME), which owns and operates the largest futures exchanges in the United States. The designated self-regulatory organization for more than 50 futures brokers, CME was supposed to be the cop on the beat.  However, t he not-so-funny thing about the relationship between MF Global and the CME Group is that MF Global recently boasted on its Website that it “was the top broker by volume at CME’s metals and energy exchanges in New York and in the top three at its Chicago exchanges.”  So, is it any wonder that the CME just last week audited MF Global’s segregated customer funds and found them to be in compliance?These are the same supposedly segregated funds which the CME is now saying may have been tampered with. According to the CME: “It now appears that [MF Global] made subsequent transfers of customer segregated funds in a manner that may have been designed to avoid detection insofar as MF Global did not disclose or report such transfers to the CFTC or CME until early morning on Monday October 31, 2011.” How much money are we talking about? About $633 million – or 11.6% out of a segregated fund requirement of about $5.4 billion.  Do you see what I’m driving at? So the real story is, the Federal Reserve, which doesn’t regulate MF Global but regulates all banks in the United States, lets a futures commission merchant with investment bank wannabe desires become an insider in its dealings. Meanwhile, a private for-profit enterprise that runs the self-regulatory apparatus that oversees its own customers steps in for a federal agency that’s supposed to be in charge of commodities, futures and derivatives markets. And that’s only the tip of the iceberg. Let me jump on the Securities and Exchange Commission (SEC) next, because you aren’t going to believe this, either. Subterfuge at the SEC It’s come to light recently that the SEC has been blatantly violating federal law for decades. Since at least 1992 through 2010,the SEC has destroyed more than 9,000 documents that by law were supposed to be saved and turned over to the National Archives and Records Administration and kept for 25 years.  The documents were records of enforcement cases where, after preliminary inquires, it was decided not to pursue full-blown investigations.  When the SEC has information – an anonymous tip or insights from a whistleblower, for instance – that could lead to an investigation, the subjects are pursued as “matters under inquiry,” or MUIs. A couple of examples of MUIs that went nowhere include: The several tips the agency received that Bernie Madoff was running a Ponzi scheme; the anonymous tip on Ernst and Young letterhead that said Lehman Bros. Holdings Inc. (PINK: LEHMQ) was cooking its books; or the MUIs on insider trading, fraud, and market manipulation at Goldman Sachs Group Inc. (NYSE: GS), Bank of America Corp. (NYSE: BAC), American International Group Inc. (NYSE: AIG), and SAC Capital Advisors, to name a few others. But since none of these MUIs morphed into full-blown investigations, the SEC decided to destroy all records pertaining to these inquiries rather than hand them over to theNational Archives, as federal law requires. When confronted with the unauthorized disposal of federal records, thanks to a couple of steadfast and honest lawyers in the enforcement branch of the SEC, the agency said it was “not aware of any specific instances of the destruction of records.”  What’s shocking and sickening is that even while addressing the Archives’ inquiry into the missing documents, the SEC somehow forgot to disclose to the keeper of federal records its policy to “destroy all such documents” when no further action is warranted. Too bad for the SEC an internal investigation by SEC Inspector General H. David Kotz brought to light the agency’s directive to destroy certain MUIs, along with the discovery of MUIs on old hard drives that somebody accidentally forgot to erase and destroy. Why wouldn’t the SEC keep records of enforcement activities? Why would they destroy critical data and information that could be used in the future to pursue cases that re-surfaced and could lead to bone-crushing conspiracy or racketeering charges, if not even the simple garden variety securities law violations? With any luck, we just might find out.  The SEC could and should face criminal charges for breaking federal law.  There’s a powerful push by a quiet group of angry journalists to get to the bottom of this, and I’m one of them. So, expect to hear more about this as we press on for the truth. In the meantime, it’s high time we take a good look at regulators and not just regulations to see where the cracks are in the prudential governance of markets, financial institutions, and most importantly, individuals who are responsible for decisions that break the law or grossly impact markets and our economy. After all, it’s not just regulations we need to worry about – it’s the regulators too. [Editor’s NoteMoney Morning Capital Waves Strategist and retired hedge-fund manager Shah Gilani became a national icon in 2008, as he dissected the shady workings of Wall Street, uncovering how the greed of a few brought down the economy of our entire country. He’s since launched a new publication called Wall Street Insights & Indictments. His goal simply is to show you what’s really going on in the markets, so you can “know the story” and make some money. And the best part is, it’s absolutely freeJust sign up by clicking here. You’ll also receive Gilani’s latest report: “5 Ways to Trade the Coming EU Collapse – And Make a Killing”.]   By NASSIM NICHOLAS TALEB: Published: November 7, 2011 I HAVE a solution for the problem of bankers who take risks that threaten the general public: Eliminate bonuses. More than three years since the global financial crisis started, financial institutions are still blowing themselves up. The latest, MF Global, filed for bankruptcy protection last week after its chief executive, Jon S. Corzine, made risky investments in European bonds. So far, lenders and shareholders have been paying the price, not taxpayers. But it is only a matter of time before private risk-taking leads to another giant bailout like the ones the United States was forced to provide in 2008. The promise of “no more bailouts,” enshrined in last year’s Wall Street reform law, is just that — a promise. The financiers (and their lawyers) will always stay one step ahead of the regulators. No one really knows what will happen the next time a giant bank goes bust because of its misunderstanding of risk. Instead, it’s time for a fundamental reform: Any person who works for a company that, regardless of its current financial health, would require a taxpayer-financed bailout if it failed should not get a bonus, ever. In fact, all pay at systemically important financial institutions — big banks, but also some insurance companies and even huge hedge funds — should be strictly regulated. Critics like the Occupy Wall Street demonstrators decry the bonus system for its lack of fairness and its contribution to widening inequality. But the greater problem is that it provides an incentive to take risks. The asymmetric nature of the bonus (an incentive for success without a corresponding disincentive for failure) causes hidden risks to accumulate in the financial system and become a catalyst for disaster. This violates the fundamental rules of capitalism; Adam Smith himself was wary of the effect of limiting liability, a bedrock principle of the modern corporation Bonuses are particularly dangerous because they invite bankers to game the system by hiding the risks of rare and hard-to-predict but consequential blow-ups, which I have called “black swan” events. The meltdown in the United States subprime mortgage market, which set off the global financial crisis, is only the latest example of such disasters. Consider that we trust military and homeland security personnel with our lives, yet we don’t give them lavish bonuses. They get promotions and the honor of a job well done if they succeed, and the severe disincentive of shame if they fail. For bankers, it is the opposite: a bonus if they make short-term profits and a bailout if they go bust. The question of talent is a red herring: Having worked with both groups, I can tell you that military and security people are not only more careful about safety, but also have far greater technical skill, than bankers. The ancients were fully aware of this upside-without-downside asymmetry, and they built simple rules in response. Nearly 4,000 years ago, Hammurabi’s code specified this: “If a builder builds a house for a man and does not make its construction firm, and the house which he has built collapses and causes the death of the owner of the house, that builder shall be put to death.”No such pain faces bailed-out, bonus-taking bankers. The period from 2000 to 2008 saw a very large accumulation of hidden exposures in the financial system. And yet the year 2010 brought the largest bankcompensation in history. It has become clear that merely “clawing back” past bonuses after the fact is not enough. Supervision, regulation and other forms of monitoring are necessary, but insufficient — consider that the Federal Reserve insisted, as late as 2007, that the rapidly escalating subprime mortgage crisis was likely to be “contained.” What would banking look like if bonuses were eliminated? It would not be too different from what it was like when I was a bank intern in the 1980s, before the wave of deregulation that culminated in the 1999 repeal of the Glass-Steagall Act, the Depression-era law that had separated investment and commercial banking. Before then, bankers and lenders were boring “lifers.” Banking was bland and predictable; the chairman’s income was less than that of today’s junior trader. Investment banks, which paid bonuses and weren’t allowed to lend, were partnerships with skin in the game, not gamblers playing with other people’s money. Hedge funds, which are loosely regulated, could take on some of the risks that banks would shed under my proposal. While we tend to hear about the successful ones, the great majority fail and their failures rarely make the front page. The principal-agent problem they have isn’t a problem for taxpayers: Typically their investors manage the governance of hedge funds by ensuring that the manager is hurt more than any of his investors in the event of a blowup. I believe that “less is more” — simple heuristics are necessary for complex problems. So instead of thousands of pages of regulation, we should enforce a basic principle: Bonuses and bailouts should never mix.  Nassim Nicholas Taleb, a professor of risk engineering at New York University Polytechnic Institute, is the author of “The Black Swan: The Impact of the Highly Improbable.” He is a hedge fund investor and a former Wall Street trader.   October 14, 2011 By Shah Gilani, Capital Waves Strategist, Money Morning.  I’ve already expressed my desire to embrace the Occupy Wall Street movement. I said last week that I would join in whole-heartedly if I knew exactly what the protesters were trying to achieve. But I don’t know – and I’m not convinced they do, either. Still, that doesn’t mean we should dismiss them entirely. After all, there are millions of Americans who sense there’s something terribly wrong with our capitalist system, but they can’t pinpoint exactly what it is either.  But I can.  Bad actors have done bad things to good institutions and our capitalist system. Today, I’m going to let you in on who three of those bad actors are. You see, part of the problem is that when we think of the “bad guys” on Wall Street, or in Washington for that matter, we don’t often think of specific people. We talk about “them” as faceless men we might imagine sitting in luxurious high-rises chewing on cigars and laughing as they rake in millions, or even billions of dollars on the backs of hardworking Americans.  I intend to fix that. I want to shed light on the faces of the people who are gaming the system and lay out before you the tools they’re using to get away with it. So, I’m going to start today with three of the biggest perpetrators of the mess we’re in. The Three Bears There are hundreds of bad actors on Wall Street, but three in particular tell the inside story of how appallingly corrupt our country has become. They are: Robert Rubin, who spent 26 years at Goldman Sachs Group Inc. (NYSE: GS), before becoming Treasury Secretary in the Clinton administration. Lawrence Summers, who came out of the World Bank and was Deputy Secretary of the Treasury under his pal Rubin before becoming Treasury Secretary himself in 1999. And Phil Gramm, once a practicing economist who served as a Republican Senator for Texas from 1985 to 2002. These are the men who – with help of then-Federal Reserve Chairman Alan Greenspan – interfered with the Commodities and Futures Trading Commission (CFTC), an important regulatory body, to squash any regulation of derivatives.

And now the notoriously murky derivatives market, which was hugely responsible for the 2008 financial crisis, 
has grown into a $600 trillion trouble spot for the economy.

This group of very influential and powerful men made sure there was no oversight of derivatives products and markets. None.

While that was an incredible gift to Wall Street’s biggest banks and hedge funds, the Three Bears (I call them that because their actions drove us into the systemic economic bear market from which we’re still struggling to emerge) weren’t nearly done.
 The Beginning of the End On April 6, 1998 Citicorp and Travelers Group announced that they would merge into a single company.

But there was a problem.

At the time, such a merger would have violated the 
Glass Steagall Act. If you’re not familiar with it, the Glass Steagall Act is – or rather was – a piece of Depression-era legislation that established the Federal Deposit Insurance Corp. (FDIC) and mandated the separation of commercial banks, investment banks, and insurance companies. It incorporated other practical and prudent regulations enacted to safeguard investors and the public , as well.

But , lessons learned from the Depression were eventually forgotten – or maybe more precisely, steamrolled by a sweeping deregulatory movement that took root in 1980.

On the day of the announced combination, Traveler’s chairman, 
Sandy Weill, addressed impediments to the merger in the New York Times, noting that current law would allow the new Citigroup Inc. (NYSE: C) time to divest itself of assets in order to comply with Glass-Steagall.

However, ominously he added: “We are hopeful that over time the legislation will change.”

Just one year later, it did.

The same powerful group of influence-peddling government insiders overturned Glass-Steagall in November 1999, so the illegal merger didn’t have to be reversed. The law that obliterated the prudent separation of FDIC-backed commercial banks and swing-for-the-fences investment banks became known as the 
Gramm-Leach-Bliley Act.

This act is what paved the way for giant, financial super firms that are so intertwined in the financial markets they’re now all considered “too-big-to-fail.” An Eerie Epilogue So what happened to our three players? Were they penalized or held accountable for the undermining of our economy and the implosion of markets? No. They were rewarded.

Robert Rubin went to work for the new Citigroup as a senior advisor of the firm. Rubin made $126 million in cash and stock during his eight years of service, while the bank leveraged itself up by using depositor money. It had to be bailed out in 2008.

Lawrence Summers reportedly took some $20 million from 
D.E. Shaw & Co., a giant hedge fund that dabbles in derivatives, for a two-year stint doing something nobody at the firm could confirm.

And Phil Gramm, the venerable Texas senator, upon retiring from that powerful position, immediately became vice chairman of the investment bank division of UBS AG (NYSE: 
UBS).

Yes, UBS – the same Swiss bank that in 2008 had to be backstopped by the Swiss National Bank when its overleveraged and derivatives-laden balance sheet imploded. The same bank that later paid $780 million to settle criminal charges over its conspiracy to defraud the Internal Revenue Service (IRS) and federal government of legitimately owed taxes.

These are the kinds of things that are taking place every day thanks to Wall Street’s influence over our executive and legislative branches of government. And you better believe that average Americans and the Occupy Wall Street protestors can sense that, and they know they should be angry. They just can’t put their finger on why.

I can because I’m a Wall Street guy who spent 30 years working within the system. I studied economics and started my career as a trader on the floor of the Chicago Board of Options Exchange (CBOE). I ran the futures and options division of a giant international money-center bank.

I’ve done everything from trading bonds and mortgage-backed securities to running my own hedge funds. And I have hundreds of stories full of corruption and greed – just like this one.

Not everyone on Wall Street is a bad actor. Most of the professionals working in the capital markets across America are good and honest people. But, there are kingpins and kingmakers whose greed is so disgusting they will sink America for their own fistful of dollars.

It’s time we had better insights into what’s really going on and time to indict some of these bad actors.
 [Editor’s NoteMoney MorningCapital Waves Strategist and retired hedge-fund manager Shah Gilani became a national icon in 2008, as he dissected the shady workings of Wall Street, uncovering how the greed of a few brought down the economy of our entire country. He’s since launched a new publication called Wall Street Insights & Indictments. His goal simply is to show you what’s really going on in the markets, so you can “know the story” and make some money. And the best part is, it’s absolutely freeJust sign up by clicking here. You’ll also receive Gilani’s latest report: “5 Ways to Trade the Coming EU Collapse – And Make a Killing”.] A Bilderberg Leader Mario Monti Takes Over Italy in ‘Coup’ by Alex Newman   Global Research, November 17, 2011; THE New American -2011-11-16 Italy’s new Prime Minister Mario Monti (with wife at left), who rose to power in what critics called a “coup d’etat,” is a prominent member of the world elite in the truest sense of the term. In fact, he is a leader in at least two of the most influential cabals in existence today: the secretive Bilderberg Group and David Rockefeller’s Trilateral Commission. Nicknamed “Super Mario,” Monti is also an “international advisor” to the infamous Goldman Sachs, one of the most powerful financial firms in the world. Critics refer to the giant bank as the “Vampire Squid” after a journalist famously used the term in a hit piece. But its tentacles truly do reach into the highest levels of governments worldwide.

Italy’s Political Crisis

Following the Italian government’s descent into the economic abyss that saw bond yields soar to record highs as the euro-zone began to come apart at the seams, ex-Prime Minister Silvio Berlusconi decided to step down. And late last week, President Giorgio Napolitano asked Monti to form a new government.
 On November 16, the new Prime Minister — who will also serve as Italy’s “Economy Minister” — announced that he was appointing an array of bankers, technocrats, and lawyers to lead the emerging government. After unveiling proposed reforms later this week Monti and his unelected team will face Parliament in a confidence vote.

Some of the nation’s political parties have already said they support the new leadership. But others, including loyal members of Berlusconi’s party, complained of a “coup d’etat” engineered by bankers and the European Union.

“The truth is that there was a big operation, an ‘Italian Job,’ to get Berlusconi out of the way by forcing him to resign,” complainedformer Interior Minister Roberto Maroni, comparing Berlusconi’s ouster to the movie of that same name made in1969 and remade in 2003. While the ex-Prime Minister was not technically forced to resign, he said it was an act of “responsibility.”

Monti: Insider Extraordinaire

Listed as a member of the “steering committee” on the official Bilderberg website, critics say Monti has “establishment” written all over him. The shadowy group he helps lead includes a roster of the world’s real power brokers — media magnates, royalty, military leaders, big bankers, heads of state and government, key CEOs, and more.

The elite members gather once a year in total secrecy, sparking innumerable theories and widespread concern. In 2011 the group met in Switzerland and attracted more scrutiny than in the past.

But despite the attendance of influential reporters, editors, and media power houses, very little of substance was publicly revealed. It is known, however, that Bilderberg played a crucial role in erecting the increasingly powerful supranational regime in Brussels.

Monti is also the European Group chairman of the infamous Trilateral Commission, according to theorganization‘s website. The secretive group, which also lists among its members some of the most influential members of the world elite, was supposedly founded to bring about closer “cooperation” between North America, Europe, and Japan.

The Commission was founded in 1973 by the infamous banker and power-broker David Rockefeller. “Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure — one world, if you will,” Rockefeller wrote in his 2002 autobiography. “If that’s the charge, I stand guilty, and I am proud of it.”

Monti is also a prominent leader of more than few smaller “think tanks” promoting more “integration,” big government, and globalism. He has been a long-time and consistent supporter of an “economic government” for the EU, as well as more Brussels meddling in social policies.

His career has included academia, politics, banking, and more. And he has held several prominent positions within the European Union apparatus including the job of European Commissioner for Internal Market, Financial Services, Financial Integration, and Taxation.

The Rescue Plan

“I would like to confirm my absolute serenity and conviction in the capacity of our country to overcome this difficult phase,” Monti proclaimed recently. And he will have plenty of help.

The European Central Bank has started to do everything possible to rescue the profligate Italian government – albeit quietly. According to Bloomberg, the ECB began buying up huge quantities and sizesof the regime’s bonds this week.

“There are no real buyers,” European interest-rate strategy chief Mohit Kumar with Deutsche Bank told the news service. Analysts suspected that the ECB move was designed to bolster confidence in the new Italian government and its leader.

Monti’s first task will be to satisfy EU rulers by imposing massive new taxes on the Italian people. Tough “austerity” measures will follow soon after that. He said more growth — a tough task with new and higher taxes — will be his priority.

“I hope that, governing well, we can make a contribution to the calming and the cohesion of the political forces,” Monti explained after meeting with union bosses.

The Italian government is currently drowning in trillions of euros worth of debt — well over 100 percent of GDP. And the market seems largely unwilling to loan it more money without EU prodding, guarantees, and huge yields.

EU and euro-zone advocates are doing everything possible to avoid a calamity that could bring down their precious supranational government and its regional currency. But Italy, as the third-largest euro-zone economy, is simply too big to bail out, according to experts — even with the emerging “dictatorship” mechanism designed to save bankrupt governments and banks using taxpayer money.

Monti could have until 2013 — the next scheduled election — to implement his “reforms,” assuming he gets his way. Critics, however, are calling for new elections to be held as soon as possible.

Critics, Greece & the Future

While Italy will now be governed by the very definition of an “insider,” Greece faces a similar situation. Its new Prime Minister, Lucas Papademos, was the vice president of the ECB and even worked for the Federal Reserve. He has also been a member of the Trilateral Commission for over a decade.

But critics are outraged. “The rise of bankers and unelected technocrats to power in Greece and Italy shows how the unfolding crisis of the euro-zone is undercutting democracy,” complained Costas Panayotakis, a professor of sociology at the New York City College of Technology at CUNY.

Italian activists had harsh words for Monti, too. “The proposed new coalition government headed by Mario Monti can be a fatal trap for Italy’s future,” explained Campaign for World Bank Reform leader Antonio Tricarico. “If most of political forces from the right and the left would support it, the European Commission and the European Central Bank – whose agenda Monti represents – will rule Italy without any opposition for the years to come, beyond any minimum standard of democratic accountability.”

Analysts said installing pro-EU and single-currency rulers in Greece and Italy was aimed at quieting the growing calls for the euro-zone to be dismantled. But it remains unclear whether they will succeed as the economic crisis continues to spiral out of control across Europe.
  
Alex Newman is a frequent contributor to Global Research. Global Research Articles by Alex Newman. November 23, 2011.  ByDr. Kent Moors, Global Energy Strategist, Money Morning: I am in Frankfurt, Germany right now attending three days of meetings, and I must say they’re shaping up to be quite interesting. The focus is on structuring a new financial and organizational approach todeveloping Polish shale gas.  A successful outcome would have an impact on both continental energy sources and the ongoing European debt crisis. And the stakes have become even higher in the past several weeks.  In focus this week are the rising energy needs across Europe and what securing considerably greater sources of domestic natural gas will mean to the debt crisis. Meanwhile, we have to consider the potential for some North American companies to generate significant profits by meeting these growing energy demands. As I noted during my last advisory trip to Poland, Warsaw has decided to fast- track its shale gas development. With reserves now estimated to be much higher than initially thought, the country has the opportunity to become self-sufficient and to startexporting gas to other European countries and elsewhere as early as a decade from now.  That would have a serious impact on the energy balance in Europe as a whole. With the prospects of additional domestically produced energy, the balance of payments will be improved, and with it the debt picture. Now reinvigorating the Polish picture is not going to do this on its own. Here is where it gets very interesting. What takes place in Poland will expand elsewhere into Western Europe. There are shale gas reserves in Germany, Hungary, Austria, France, the Baltic countries, Sweden, and even the U.K. Political opposition has suspended activities in France, and the Greens in Germany have given notice that they intend to target shale gas operations after their successes in phasing out the country’s nuclear power stations. Poland, however, has no significant opposition to drilling. At least, not at the moment. But as I advised the government in September, that situation is likely to change as the number of wells increases. In order to combat any opposition, the country is going to need to access to drilling technologies developed in the Western Hemisphere, technologies that address the primary concerns about hyrdofracking and horizontal drilling. The North American Advantage. The eight- to 10-year head start North America has had on the rest of the world means there have been significant technological and operational developments in the U.S. and Canada to meet a number of the environmental and logistical problems related to hy drofracking and horizontal drilling.  It’s these two advances that have ushered in this whole new world of energy in the United States. Now eight to 10 years may not sound like a huge advantage…Three Measures of Success:  Three primary issues are on the table this week. First, companies need to be established in both Poland and more broadly in Europe to coordinate the required field exploration, preparation, drilling, water usage, drilling, processing, environmental protection, supply and support dynamics, gas storage, pipeline networks, terminals, compressor stations, and a range of other matters from training personnel to protecting the transparency necessary in a democratic environment. Second, companies need to have access to funding in ways that will prevent Poland (and other European countries as well) from being dependent upon outside finance. This must be a European Union (EU)-based financing scheme to parallel European-controlled field development and drilling programs. Third, the Polish-then-broader-Europe requirements include immediate access to North America’s “generationally leading” technology. It is at this point that an attitude I have held with companies for years will become operational. The development of shale gas reserves elsewhere in the world will comprise one of the most profitable applications of technology, know-how and experience ever seen. Structural Requirements Ahead. Let me be very clear on this score. U.S. and Canadian companies are set to make significant returns from the Polish experiment – both in Poland itself, and as the applications there move across borders into neighboring states. But this will have to remain a Polish (or German or Austrian or Hungarian) initiative translated into in an EU-wide opportunity. The trick is to structure this as a win-win creation of joint ventures, limited liability companies, holding strategies, and other approaches. Outside companies coming into pan-European major plays like this cannot succeed merely by setting up European-based subsidiaries. This must be a European company in which an American or Canadian company has a vested, but not controlling, interest. The advantage to the European market is access to technology and expertise. The advantage to the outside company is a very lucrative potential revenue flow and an expansion of such work moving forward.  November 30, 2011:  By David Zeiler, Associate Editor, Money Morning ; With credit drying up across Europe we may finally see the Eurozone experience its “Lehman moment” – a replay investment banking collapse that triggered the 2008 financial crisis. Indeed, European banks are having a harder time getting money – part of the fallout from the Eurozone debt crisis – and the resulting credit crunch could freeze business activity, cause bank runs and plunge Europe into a deep recession that would badly damage the global economy. “The Continent is headed towards deflation if there’s not enough money circulating throughout their financing and banking systems,” said Money Morning Capital Waves Strategist Shah Gilani. “This all becomes self-fulfilling at some point. It’s a very dangerous situation, not just for Europe, but for the whole world.” A global financial crisis would derail the struggling U.S. recovery and pinch the profits of many multinational corporations. Fresh data this week from the European Central Bank (ECB) showed the M3 Eurozone money supply actually shrank in October by 0.6%, its steepest drop since January 2009 – the height of the Lehman Brothers crisis. A shrinking money supply is one of the early warning signals that credit availability is drying up, making it difficult or impossible for banks, businesses, and consumers to obtain loans.  “This is very worrying,” Tim Congdon from International Monetary Research told The Telegraph. “What it shows is that the implosion of the banking system on the periphery is now outweighing any growth left in the core. We are seeing the destruction of money and it is a clear warning of serious trouble over the next six months.” Signs of capital draining from European banks abound. The bank bond market is already frozen. European banks in the third quarter were only able to sell bonds worth 15% of what they sold in the same period in the previous two years, according to Citigroup Inc. (NYSE: C). In the past six months, U.S. money market funds have withdrawn 42% of their money from European banks. And loans to French banks have fallen 69% since the end of May, according to Fitch Ratings. Even retail customers have started to pull their money out. “We are starting to witness signs that corporates are withdrawing deposits from banks in Spain, Italy, France and Belgium,” an analyst at Citigroup wrote in a recent report. “This is a worrying development.” How It Happened. The current credit crunch has its roots in the Eurozone debt crisis; the big European banks such as BNP Paribas SA, Commerzbank (PINK: CRZBY) and Societe Generale SA (PINK: SCGLY) hold much of the debt from Portugal, Italy, Ireland, Greece and Spain (PIIGS) that has forced a series of bailouts and fiscal emergencies.  But the billions of euros worth of PIIGS government bonds were considered part of the banks’ assets; it could be used as collateral to serve the banks’ various activities. When the Eurozone debt crisis struck, faith in the value of the PIIGS bonds plummeted, which made it almost impossible to use as collateral.  “The discounting of sovereign debt meant that there was less money in the European banking system,” writes John Carney, senior editor of CNBC. “If a one million euro bond previously held as a money-equivalent is now worth just 600,000 euros, the holder has lost 400,000 euros. Multiply that across the banking system, and you have millions of euros of money-equivalents simply vanishing.” Carney said the situation is similar to the impact of the decline in value in the United States of mortgage-backed securities back in 2008.  The Bernanke Remedy. However, during the 2008 financial crisis, the U.S. Federal Reserve stepped in to prop up the banks as well as the mortgage market by infusing them with cash. Although the Fed’s European equivalent, the ECB, has continued to buy up PIIGS government bonds in a partially successful attempt to restrain rising bond yields, it has resisted taking action on the scale of the Fed. “This is what happened in the United States in 1930-33,” said Money Morning Global Investing Strategist Martin Hutchinson. “It also happened to a very limited extent in 2008-09. In a real crisis, the interbank lending market seizes up, which collapses even broad money supply. It is the one situation in which the [U.S. Fed Chairman Ben] Bernanke remedy – print the stuff like a madman – works.” But even then, Hutchinson said, the ECB should avoid PIIGS bonds in favor of bonds from more financially stable nations such as Germany, France, Finland and the Netherlands. In fact, the European banks have begged the ECB to do more, particularly more aggressive buying of government bonds. As it is, the big banks are dependent on the ECB; just two weeks ago they took out out $333 billion worth of one-week loans – the largest amount since April 2009. But more drastic action from the ECB appears unlikely, with opposition coming from within the central bank as well as from a German government fearful of triggering inflation. The best that is expected near-term is a December interest rate cut, which won’t do nearly enough. Money Morning‘s Gilani is pessimistic the ECB even has the power to fix the deeper issues, or whether stronger ECB intervention could do anything to prevent the Eurozone’s looming “Lehman moment.” “The ECB doesn’t have the authority to print enough money to ameliorate the situation,” Gilani said. “Buying bonds is a Band-Aid. The real structural problems facing Europe are going to require wholesale lifestyle changes that won’t get done in a year or two. ECB meddling will only serve to extend the problem while they pretend things will sort themselves out.”   November 30, 2011. By Shah Gilani, Capital Waves Strategist, Money Morning: The average American has no idea how protected the big banks in this country really are. For the most part we don’t even blink when we are lied to publicly by their CEOs. Maybe that’s because the biggest bank in the world, the U.S. Federal Reserve, which happens to be a creation of and 100% beholden to the banks that it is a master shill for, also lies to us and covers up Wall Street’s misdeeds. How else can you explain the Federal Reserve’s practice of secretly feeding billions of dollars to big banks, and then looking the other way while those same banks lie to the public about their strength so they can raise desperately needed equity and borrow in the debt markets?  Why else would the Fed prop up Bear Stearns long enough for JPMorgan Chase & Co. (NYSE: JPM) to buy it, and then prop up JPMorgan? Why else would the Fed prop up Merrill Lynch for the benefit of Bank of America Corp. (NYSE: BAC), and then prop up Bank of America as Merrill dragged it down. And why else would the Fed prop up Wachovia just so it could be taken over by Wells Fargo & Co. (NYSE: WFC) – yet another bank that would come to need even more help?  Power and Ponzi Schemes: The pat answer from the Fed is that propping up failed banks long enough to be taken over by “healthy” institutions is better for the system than letting them fail. On the surface that’s true, but it’s what’s under the surface that’s destroying America’s free market foundation. Here’s what’s come as a result of the Fed’s actions: The “Super-Six” – JPMorgan, Bank of America, Citigroup Inc. (NYSE: C), Wells Fargo, Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE:MS) – which held $6.8 trillion, or about half the industry’s assets in 2006, had increased their holdings by 39% to $9.5 trillion as of September 2011. So what’s really going on is that the country’s biggest banks, which weren’t healthy when their CEOs lied to us (as they still do), have gotten even bigger. With size comes power – the power to pay lobbyists, the power to pay for legislators, and the power to change regulations. These banks don’t always get what they want exactly when they want it, but they do eventually get what they need to make money hand over fist. The whole thing reminds me of a Ponzi scheme. The Federal Reserve might as well be Bernie Madoff and the banks “feeder funds” in this nationalized scheme to perpetuate the channeling of depositor money into banks and investor money into bank stocks and debt securities. For the chain to be broken the Federal Reserve is going to have to be overhauled – seriously overhauled – and big banks are going to have to be broken up, once and for all. The Truth Comes Out. .How deep is the scheme to keep banks growing and their power expanding? The numbers speak for themselves.

The Fed did everything it could to hide its books from public view, but 
Bloomberg LP sued the central bank, and in so doing, forced the Fed to comply with the Freedom of Information Act.

Thank you, Bloomberg, this nation owes you a debt of gratitude.

What was revealed were little items – things like the Fed having actually 
shelled out some $7.77 trillion to prop up both domestic and foreign banks, even though some either didn’t need the money or should never have gotten it in the first place.

Why would banks or corporations take money they didn’t need? Because it was essentially free – well not exactly free, since they had to pay about 1% interest in some cases and one-tenth of one percent in other cases.

Still, you can make good money borrowing practically for free and investing that money in anything interest bearing. That includes the toxic assets on many borrowers’ books that they didn’t have to sell because they got financing to keep them on their books. Oh, and that’s still happening, a lot.

You see, part of the big lie was that it would take $700 billion of Troubled Asset Relief Program (TARP) money to aid our stricken banks. Of course, that was front money, or money that the public could see. What the public couldn’t see was how bad things really were, because it couldn’t see how much taxpayer money the Fed was shelling out.

Nor could Treasury officials see it, nor could legislators writing new bank regulatory rules to ensure this wouldn’t happen again.

But it will happen again. It’s just a matter of time.
 Fixing the Fed for Good There is only one solution to our banking problems, which are the root of our economic problems.

The Fed needs to have only one mandate, which is price stability. It should be an open, audited, and transparent apparatus serving the public – not banks.

And, as far as banks go, the more the merrier. Break up all the too-big-to-fail institutions. No bank should be able to hold more than 5% of the whole industry’s assets, and if that gives any one bank too much power, cut the number later on.

It’s time we woke up to the lies we’re being told by the Fed and the banks. It’s time to break the chains that enslave us as a free-market nation.
 December 2, 2011 Money Morning staff reports The Eurozone debt crisis has replaced the U.S. financial crisis as the disaster du jour. But make no mistake: U.S. taxpayers will be paying the tab for the U.S. crisis for years.

That’s evidently not true of the banking sector, however, whose massive financial-crisis windfall is just now coming to light.

In its January issue, Bloomberg Markets magazine 
reveals that – at the March 9, 2009 nadir of the financial crisis – the U.S. Federal Reserve had committed $7.77 trillion to rescuing the American financial system. That total was more than half the value of all that was produced in the U.S. economy for that entire year.

While this was going on however, it was a deep, dark secret. The Fed never let on, for instance, that American banks were in such deep trouble that they required a combined $1.2 trillion on Dec. 8, 2008 – “their neediest day,” Bloomberg said.

But here’s the best part: Many of the biggest banks have ended up doing great as a result of the central bank’s largesse.

Here’s why: Because these “emergency” Fed loans gave banks access to ultra-low (well-below-market) interest rates between August 2007 and April 2010, banks worldwide were able to earn an estimated $13 billion.

Dean Baker, co-director of the Center for Economic and Policy Research in Washington, told Bloomberg that banks seemed to have it both ways.

Banks “were either in bad shape or taking advantage of the Fed giving them a good deal,” he said. “The former contradicts their public statements. The latter – getting loans at below-market rates during a financial crisis – is quite a gift.”

Shah Gilani, 
a financial-crisis expert and Money Morning columnist who edits the free Wall Street Insights & Indictments newsletter, put it more simply: “The average American has no idea how protected the big banks in this country really are. Maybe that’s because the biggest bank in the world is the U.S. Federal Reserve. And it happens to be a creation of – and 100% beholden to – the banks that it is a master shill for. It also lies to us and covers up Wall Street’s misdeeds.”

What follows is a “power ranking” of the 20 banks that saw their outstanding loans peak at more than $25 billion – and some insight on how this Fed lending enabled Wall Street to profit, even as Main Street suffered.
 1. Morgan Stanley (NYSE: MS)
Borrowing at the Peak (Date): $107 billion, Sept. 29, 2008.
With worldwide financial markets in a meltdown mode, Morgan’s apex of loans from U.S. Federal Reserve offerings came just two weeks after Lehman Brothers, its erstwhile competitor, had filed for the biggest corporate bankruptcy in U.S. history (more on that in a moment).

2. Citigroup Inc. (NYSE: 
C)
Borrowing at the Peak (Date): $99.5 billion, Jan. 20, 2009.
Talk about being money hungry. The first installment of money from the better-known 
Troubled Asset Relief Program (TARP) wasn’t nearly enough to stop Citi’s bleeding – which is why, in January 2009, Citi required a second infusion of bailout money. No surprise here … that’s also when Citi’s Fed-facilities borrowing reached its apex.

3. Bank of America Corp. (NYSE: 
BAC)
Borrowing at the Peak (Date): $91.4 billion, Feb. 26, 2009.
Like Citi, Bank of America was a TARP double-dipper. It also snapped up two companies – Merrill Lynch and Countrywide Financial Corp. – that, too, were borrowing billions from the U.S. central bank.

4. Royal Bank of Scotland Group PLC (NYSE ADR: 
RBS)
Borrowing at the Peak (Date): $84.5 billion, Oct. 10, 2008.
At No. 4, the highest-ranking foreign bank on this list, RBS also got a hefty bit of support from its native United Kingdom government.

5. State Street Bank (NYSE: 
STT)
Borrowing at the Peak (Date): $77.8 billion, Oct. 1, 2008.
The old business adage tells us to cut out the middleman. But not State Street. In fact, Bloomberg News reports that State Street initially served as a middleman, tapping into the central bank’s liquidity facilities to help money-market funds meet soaring redemption demands (collecting a fee for its trouble, of course) – but finally turned to the Fed for help, too.

6. UBS AG (NYSE: 
UBS)
Borrowing at the Peak (Date): $77.2 billion, Nov. 28, 2008.
A double-dipper of sorts, too, European banking heavyweight UBS achieved this distinction by getting help from the Fed and alsoreceiving a substantive aid package from the Swiss government.

7. Goldman Sachs Group Inc. (NYSE: 
GS)
Borrowing at the Peak (Date): $69 billion, Dec. 31, 2008.
Goldman Sachs execs may not have been celebrating on New Year’s Eve, when its Fed loans hit their apex. That was also the close of the month that saw Goldman report its first quarterly loss since its 1999 IPO.

8. JPMorgan Chase & Co. (NYSE: JPM)
Borrowing at the Peak (Date): $68.6 billion, Oct. 1, 2008.
Like BofA, JPMorgan used the crisis as a cover for a shopping spree. And like BofA, JPMorgan snapped up two other substantive central bank borrowers – Bear Stearns (which it had rescued a bit before this) and Washington Mutual (acquired after a Federal Deposit Insurance Corp. (FDIC) seizure in September 2008).

9. Deutsche Bank AG (NYSE: DB)
Borrowing at the Peak (Date): $66 billion, Nov. 6, 2008.
It may have been Germany’s biggest bank, but it was one of the U.S. central bank’s biggest debtors: During the 439 days it held Fed liquidity money, Deutsche Bank maintained one of the largest average daily balances at $12.5 billion, according to Bloomberg News.

10. Barclays PLC (NYSE ADR: 
BCS)
Borrowing at the Peak (Date): $64.9 billion, Dec. 4, 2008.
Borrowing by the London-based Barclays topped out only a couple of months after a failed first attempt to buy out Lehman Brothers. No matter. That led to a killer deal that enabled Barclays to snap up some of the failed U.S. brokerage firm’s sweetest assets.

11. Merrill Lynch
Borrowing at the Peak (Date): $62.1 billion, Sept. 26, 2008.
By the time Merrill Lynch maxed out its central-bank borrowing, the “bullish-on-America” broker had given the nod to a buyout deal from Bank of America. Just a couple months later, the double-whammy of a gargantuan fourth-quarter loss coupled with the revelation of 11th-hour bonus payments to top execs ended the regime of then-CEO John Thain.

12. Credit Suisse Group (NYSE ADR: 
CS)
Borrowing at the Peak (Date): $60.8 billion, Aug. 27, 2008.
Another example of U.S. taxpayer money at work as this Swiss bank got a big boost from central-bank bucks. As Forbes magazine most delicately stated: “Swiss bank … was helped out by U.S. dollars. Credit Suisse had a sizable average daily balance of $13.3 billion – for the 386 days it was in hock to the Fed.”

13. 
Dexia SA
Borrowing at the Peak (Date): $58.5 billion, Dec. 31, 2008.
Another foreign bank that required U.S. rescue, this French-Belgium-Luxembourg bank didn’t seem to learn its lesson: Dexia is once again under pressure – this time over its exposure to the European financial crisis.

14. Wachovia Corp.
Borrowing at the Peak (Date): $50 billion, Oct. 9, 2008.
By the time Wachovia’s central-bank borrowing hit its apex, it was the rope in a takeover tug of war that pitted Citi against Wells Fargo. Wells ultimately prevailed, and snapped up Wachovia.

15. Lehman Brothers Holdings (PINK: 
LEHMQ)
Borrowing at the Peak (Date): $46 billion, Sept. 15, 2008.
Lehman’s borrowing peaked on the same day that it filed for the biggest corporate bankruptcy in U.S. history. The company, with more than $690 billion in assets, “became a victim, in effect the only true icon to fall in a tsunami that has befallen the credit markets,” Manhattan Bankruptcy Judge James Peck said after a seven-hour bankruptcy hearing that was held exactly one week later.

16. Wells Fargo & Co. (NYSE: 
WFC)
Borrowing at the Peak (Date): $45 billion Feb. 26, 2009.
Not surprisingly, Wells Fargo’s borrowing apex was reached a couple of months after the already referenced buyout of Wachovia. Because it had to absorb the trashed assets of a stumbling Wachovia, Wells Fargo had to take a big hit to its earnings for the final quarter of that year.

17. Bear Stearns
Borrowing at the Peak (Date): $30 billion, March 28, 2008.
The Fed 
couldn’t do enough for a Bear Stearns: Not only did the central bank lend money from its still-new liquidity program, it also helped broker the sale to JPMorgan at a bargain price. All the Fed had to do was assume $29 billion in lousy mortgage-backed assets in a facility dubbed “Maiden Lane” (because of the street that runs beside the New York Federal Reserve in Manhattan).

18. 
BNP Paribas SA 
Borrowing at the Peak (Date): $29.3 billion, April 18, 2008.
Yet another foreign bank – this one France’s largest – BNP Paribas was in hock to the U.S. central bank for two years – a relationship that started in December 2007. And like Dexia, another foreign bank that required central bank rescue, BNP also failed to learn its lesson: Data from Barclay’s Capital says BNP has the largest exposure to Greek debt of any French bank.

19. 
Hypo Real Estate Bank International AG 
Borrowing at the Peak (Date): $28.7 billion, Nov. 4, 2008.
Bloomberg News reports show that this German commercial lender was yet another “double-dipper:” It tapped into U.S. Fed loans through the New York-based unit of a banking subsidiary. Hypo also reaped billions in guarantees and emergency credit from its home government.

20. Fortis Bank
Borrowing at the Peak (Date): $26.3 billion, Feb. 26, 2009.
Until it was broken into pieces, nationalized and pieces of it sold to … of all institutions … BNP Paribas, the banking arm of Fortis also snagged billions from the governments of Belgium and Luxembourg.
 [Editor’s Note: If you’re fed up with the rampant corruption, double-dealing, and protection of Wall Street by Washington (at the expense of the taxpayers on America’s Main Street, then you need to read Shah Gilani’s Wall Street Insights & Indictments newsletter. As a retired hedge-fund manager, Gilani is a former Wall Street insider who knows where all the bodies are buried.   December 5, 2011. By Keith Fitz-Gerald, Chief Investment Strategist, Money MorningOne of the biggest problems with Wall Street’s malfeasance is how the ruling elite view legal settlements – as little more than an acceptable cost of doing business.

Well, no more.

Thanks to 
Judge Jed Rakoff we may see some real regulatory action leading to good old-fashioned investigations, perp walks, and even jail for the guilty.

I’m not talking just about the 
Bernie Madoffs or the Raj Rajaratnams either. I’m talking about potentially CEOs and even entire corporate boards.

Judge Rakoff recently rendered a 15-page decision rejecting the U.S. Securities and Exchange Commission’s (SEC) $285 million settlement with Citigroup Inc. (NYSE: 
C) over toxic mortgages, calling it “neither reasonable, nor fair, nor adequate, nor in the public interest.”

This is important because settlements like these have been a farce for years – little more than the financial equivalent of a parking ticket and having about as much impact.

In fact, in a world where banking secrecy is paramount and 
investment firms like Goldman Sachs Group Inc. (NYSE: GS), JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp. (NYSE: BAC) and others rule the roost, they’re little more than obfuscations of the truth.

The investigations into these banks are toothless or highly secretive at best. Rarely does the public see anything even remotely resembling full disclosure.

Instead we’re supposed to be placated by headlines insinuating that the SEC, the National Futures Association (NFA) and more than 20 other regulatory agencies are looking out for our best interests.

Who are they kidding?
 A Drop in the Bucket Remember the $550 million fine Goldman was forced to pay for its role in toxic credit default swaps (CDOs)? At the time it was the largest ever levied.

SEC officials couldn’t stumble over themselves fast enough nor get enough sound bites. I recall lots of PR shots with earnest-looking people evidently proud of themselves for having made Goldman pony up at the time.

And the mainstream press loved it. But there was one tiny problem.

The firm booked $13.3 billion that year. Paying off the SEC in a settlement that neither admitted nor denied wrongdoing was an acceptable cost of doing business that amounted to a mere 4% of revenue.

The proposed Citi settlement was much the same. It would have required Citi to give up $160 million of alleged ill-gotten profits, $30 million of interest, and a $95 million kicker for negligence.

Bear in mind, Citi reported full-year net income of $10.6 billion on revenue of $60.5 billion in 2010 which means that, like the Goldman fine, the settlement is a drop in the bucket at a mere 1.50% of net income.
 I think Judge Rakoff’s ruling has been a long time coming. And I love the fact that he specifically called out the Citi settlement as too lenient – especially when it also potentially allows Citi to skate on reimbursing investors for the $700 million the firm lost as part of its toxic mortgage trading.

You may not realize this, but private investors cannot bring securities claims based on negligence. In my mind, they should be able to, but for now this is the way the law stands.

The way I see it, Rakoff’s decision finally gets at the core of what caused the financial crisis: 
toothless regulators beholden to the very powerful elite they were supposed to keep in check.

I am all too glad to see him show the public the first glimpse of backbone we’ve seen yet.

Washington, are you watching and listening?
 Sitting on the Bench, Swinging for the Fences Judge Rakoff noted in his ruling that there is an “overriding public interest in knowing the truth.” Yes, there is.  And as Judge Rakoff put it, the SEC’s core duty is to “see that the truth emerges.” In the event that it doesn’t as part of the settlement process, “courts must not, in the name of deference of convenience, grant judicial enforcement, to the agency’s contrivances.”

I did some checking and I learned that this is not the first time Rakoff has stuck it to the SEC.

Apparently, he’s the one who made headlines when he initially rejected the BofA settlement related to that bank’s shotgun takeover of Merrill Lynch & Co., a fact I’d forgotten.

At the time, Rakoff rejected the SEC’s $33 million BofA settlement on the grounds that it punished shareholders. The SEC then came back with a much more realistic $150 million agreement.

Some think Rakoff has gone too far. They worry that judges have no business interfering in agreements ostensibly reached by private parties.

But I disagree. I believe the SEC is the public.

And the public has the right to know about any case where the transparency of the financial markets (or lack thereof) has so impacted the markets as to destroy the wealth of millions of hard working people and bring the global markets to the edge of oblivion.

Frankly, I’d love to shake Judge Rakoff’s hand.

I hope what he’s done encourages judges to finally stand up for the body of law they supposedly represent and the public that it’s intended to protect.
   December 16, 2011. By Keith Fitz-Gerald, Chief Investment Strategist, Money Morning On Wednesday, Fitch Ratings Inc.downYgraded its credit ratings on five of Europe’s biggest banks, and while that decision made headlines, it’s not the most important story to come out of Europe this week.

The real story, which the mainstream media is neglecting, is that there are signs of an underground run on Europe’s banks.

Almost nobody’s talking about it, but there are indications money is already moving out of the European Union (EU) faster than rats abandoning a sinking ship.

Not through the front door, mind you. There are no lines, no distraught customers and no teller windows being boarded up – not yet, anyway.

For now the run is through the back door, and there are four things that make me think so:
 Italy’s planned ban on cash transactions over 1,000 euros, or about $1,300. French, Spanish, and Italian banks have run out of collateral and are now pledging real assets. Swiss officials are preparing for the end of the euro with capital control measures. Europe’s CEOs are actively preparing for the end of the euro despite governmental reassurances. Signs of a Run Let’s start with Italy and Prime Minister Mario Monti‘s plans to restrict cash transactions over 1,000 euros (down from the current limit of 2,500 euros, or about $3,200).

Ostensibly the move is about reducing tax evasion by prohibiting the movement of large sums of cash outside the official transactional system, but I think it speaks to something far more sinister – namely that the Italian government knows things are going to get far worse than they’re publicly admitting.

Consider: Cash is a stored value mechanism. There’s not a lot of it because at any given point in time, most of it is on deposit with banks in any country. That’s as true in Italy as it is here in the United States when real interest rates are positive during “healthy” times.

But when real interest rates turn negative, people are likely to withdraw cash and stuff it quite literally under mattresses or in coffee tins. (Real interest rates are the official lending interest rates as adjusted for inflation.)

In such an environment, holding cash in a bank becomes nothing more than an imputed tax and a disincentive for deposits. It’s also a significant thorn in the side of central bankers who want to control their country’s money supply, because cash can operate outside the system and, specifically, logjam reform efforts.

The reason is really pretty simple. If you have negative real interest rates, and cash transactions are largely restricted or removed altogether, then the only way to effectively use cash is to withdraw it and spend it… immediately.

In other words, by limiting cash transactions to 1,000 euros or less, Italy is putting into place a punitive financial control fully intended to keep money moving in a system lest it become worthless or worse – hoarded and worthless.

Now let’s move on to banks.
 Banking Breakdown Many investors have never thought about it before, but there are really only three sources of funding for a bank: Money that’s effectively “lent” to the bank by customers placing their assets on deposit; Short-term money market funds; And long-term bonds or securitized products based on long-term paper sold to bond investors. Together, the three funding sources are like the legs on a stool – lose any one of them and the stool will topple over because it is no longer balanced. Cut the legs down and the stool collapses – that’s what is happening now. Individuals, pension funds and institutions alike are withdrawing funds from Italian, Spanish and French banks. Money has long since left Greece, Ireland, and Portugal.

Thing is, though, it’s not just European money that’s fleeing. Various reports from The EconomistBloombergCNBC and others suggest that American financials may have pulled more than 40% of their funds from all European banks and nearly two-thirds of their total deposits away from French banks. This is drying up short-term lending capacity and driving up interbank lending costs.

At the same time, money managers the world over are selling their European bonds. This is driving prices lower and yields higher to the point where the cost of debt is now prohibitive (bond prices and yields move in opposite directions). As a result, new bank bond issuance may be down as much as 85% over the past two years, which further hobbles cash hungry European banks.

Finally, facing a near total loss of short-term financing alternatives and having run out of short-term liquidity needed to operate, a number of EU banks are reportedly having to pledge real assets as collateral for badly needed loans.

Normally, banks would use loans, leases or receivables to accomplish the same thing. The fact that they’re now having to throw in real estate, their own property, and other assets into the mix signals extreme levels of financial stress that are far worse than what’s been disclosed publicly.
 Bracing for the Inevitable Swiss Finance Minister Eveline Widmer-Schlumpf noted to the Swiss Parliament that she’s got a working group examining capital controls and negative interest rates as a means of preventing an economy-crushing Swiss franc appreciation when the euro fails. That’s not if the euro fails, but when the Euro fails.

This is an especially dire sign because capital control measures like those the Swiss officials are considering are inevitably the end of any failed monetary system.

European CEOs and their companies are taking matters into their own hands by actively preparing for the destruction of the euro.

Some, like German machinery maker GEA Group AG (PINK: 
GEAGY) are limiting the maximum funds on deposit with any single bank. Others, like Grupo Gowex, are moving cash and deposits to Germany away from Spanish banks (and Grupo Gowex is a Spanish company based in Madrid, so this is especially telling). BMW plans to cut production by 30% while also tapping into central bank reserves. According to Chief Financial Officer Friedrich Eichiner, the company is already reducing its leasing portfolio to cope with the potential decrease in car values that would impact its borrowing capacity.

As for what all this means for our money, that’s pretty clear – think SAFETY FIRST. The return of your capital is far more important than the return on your capital at the moment.

Here’s what I suggest.
 Buy dollars – I know they’re a bad long-term bet, but short-term, they’re the best looking horse in the global glue factory as long as the euro is under pressure. Stick with what you have in place now and manage risk with trailing stops. Confine new stock purchases to high-growth, low-debt emerging markets rather than low-growth, high-debt developed markets. Short gold and oil in the short-term. Both are priced in dollars, which means both will fall as the dollar rises in conjunction with panic in the EU. Purchase inverse funds that track the broader markets. If the euro fails, it will tank the broader markets. Then, once it becomes clear that the world will live on, the markets will disconnect from Europe and begin to rise again in earnest. Run the other way if people tell you that banks are a great investment. They are speculative at best given the number of skeletons still in the closet.     Euro Crisis: Britain’s Financial Arsonist Returns to the Scene of the Crime. By  Finian  Cunningham. URL of this article: www.globalresearch.ca/index.php?context=va&aid=28204. Global Research, December 14, 2011. The incendiary finance capitalism unleashed by Britain 25 years ago is at the heart of Europe’s raging debt woes.   You either have to admire British Prime Minister David Cameron’s brass neck, or wince at his arrogant stupidity. The smart money is probably on the latter option.   For here you had the British leader heading to the European Union summit convened last week to “salvage” the EU from its the terminal debt crisis – a crisis that is threatening the survival of the Euro single currency, the political future of the European Union and may even be sounding the death knell for the faltering capitalist world economy.   Yet, given the stakes involved, all Cameron wanted to do was exploit the crisis in order to claw further concessions for the City of London’s stock exchange. Such self-serving opportunism was rebuffed by his German and French counterparts, whereupon Cameron stomped his feet and declared that Britain would exercise its veto over EU plans for tighter fiscal controls on member states.  The British veto may now hamper the EU’s ability to assuage the financial markets, which are daily extracting pounds of flesh with exorbitant rates of borrowing on government bonds.   Not that the leaders of the other 26 EU states are acting as noble knights in shining armour, vying to protect their populaces from further economic suffering. The revised EU treaty they have in mind will only deepen that suffering by expanding austerity and cutbacks for the majority of people across Europe. The fiscal and economic policies of member states will henceforth be dictated by the European Central Bank and the International Monetary Fund. That is, national sovereignty supposedly serving the people, according to their votes, is to be replaced by the rule of unelected bankers and technocrats. In a very real way, the debt crisis of Europe is serving to usher in a dictatorship of finance capitalism.  As Paul Craig Roberts noted recently on Global Research with regard to the EU – “the banks have taken over” [1].   Ironically, it is German Chancellor Angela Merkel and her French collaborator, Prime Minister Nicolas Sarkozy, who are foremost in marching mainland Europe into the arms of this dictatorship.   However, Cameron’s one-man crusade at the EU summit was no act of Churchillian defiance to defend the rights of the people in the face of financial fascism. Britain under this present Conservative leader has been bludgeoned with one of the most draconian austerity budgets inflicted anywhere across Europe, wielded without mercy against workers and aimed deliberately at placating first and foremost the finance markets. Indeed, Cameron’s government is one of the main advocates of deeper social spending cuts for the rest of Europe.   So the notion that the British leader was in some way making a fight-them-on-the-beaches kind-of stand towards other European leaders/quislings of finance capital is risible.   And what is even more risible is that the sole objective of Cameron and his foreign secretary William Hague was to secure concessions for the City of London. Many people in Europe have good reason to believe that it is the City of London and its brand of finance capitalism that has created and provoked the debt crisis in the first place.   It was Cameron’s much-admired predecessor Margaret Thatcher who oversaw the systematic deregulation of the London Stock Exchange, starting in 1986 with what became known as the “Big Bang” – the wholesale removal of controls on financial transactions. From then on, the British economy went from one based on manufacture and production to one hallmarked by financial speculation. London became the money capital of the world, outflanking New York. The financialisation of other economies would follow the British slash-and-burn economic path, as the new culture of predatory financiers and investors used speculative profiteering to gut manufacturing bases.   The deregulation of financial markets was a showpiece policy of subsequent British governments, whether Conservative or Labour. It spawned a plethora of “financial innovations” such as hostile takeovers, downsizing, short selling and derivative trading, whereby money and debt were recycled and multiplied fictitiously – with inevitable catastrophic consequences. This of course is the ineluctable, historic dynamic of late capitalism. The system tends to mount up massive poverty and thereby becomes incapable of producing goods and services because the conventional profit system becomes exhausted. That is why late capitalism has more and more turned into a form of debt-ridden financial arson in order to recklessly eke out the last reserves of profit.   In previous centuries, it was England that innovated industrial capitalism. At the end of the 20th Century it was the British (and their Anglo-American culprits) who have the dubious honour of unleashing finance capitalism on the rest of the world. The new brand of capitalism can be traced directly to the collapse of banks and institutions, such as Barings, Lehman Brothers and Long-Term Capital Management, and to the collapse of pension funds and property assets dragging millions of people into debt. And now this particular British innovation of incendiary capitalism can be traced to the collapse of entire countries.   The spectacle of bankrupt David Cameron swaggering over to Europe to ask equally bankrupt European governments for more deregulatory concessions for the City of London is about as stupefying as an arsonist returning to the scene of the crime – and asking for more gasoline.   Finian Cunningham is Global Research’s Middle East and East Africa correspondent. cunninghamfin@yahoo.com.   November 25, 2011. By Kerri Shannon, Associate Editor, Money Morning. While most Americans will have to pinch pennies to come up with extra cash this holiday season, our leaders in Congress won’t have much to worry about. Despite failing to deliver on a number of promises and assignments, like developing a debt-reduction plan, members of the House of Representatives and the Senate will still receive their annual salary of $174,000.  Plus, many will make millions more through investment gains. If you are surprised to discover that 58% of our congressional leaders have the investment savvy to turn a six-figure salary into millions, don’t feel bad.

You see, there’s more to that story: Our friends in Washington aren’t competing on a level playing field .

According to a 
Nov. 13 CBS News “60 Minutes” report, our elected leaders in Congress may be using information gained from their “insider” positions to make highly profitable trades in the stock market.

If you or I used “inside” information to profit in the U.S stock market, we could expect a visit from the Securities and Exchange Commission (SEC) and the U.S. Justice Department. And those “visits” would only represent the start of our troubles.

The same would be true for a corporate executive, a member of the executive branch , or even a federal judge. In every case, the use of inside information would be considered a punishable criminal act.

But, it’s a completely different story for Congress, where those same laws simply don’t apply. For those elected leaders in Congress, this form of insider trading may well be unethical. But it’s also completely legal.

Congressional leaders, even though privy to non-public information, are not considered corporate insiders, and so can trade on such insights and escape penalty. Congressional staffers and lobbyists also are exempt.

Just look at U.S. Rep. Spencer Bachus, R-AL, chairman of the House Financial Services Committee.
   According to a Nov. 13 “60 Minutes” report, Rep. Bachus attended closed-door briefings in September 2008 with then-Treasury Secretary Henry Paulson and U.S. Federal ReserveChairman Ben S. Bernanke. Congressional leaders in those meetings were warned that a “global financial meltdown” was about to occur.

The very next day, Bachus bought stock options that allowed him to profit if and when the economy tanked. A financial disclosure showed that he turned a profit trading General Electric Co. (NYSE: 
GE) during the financial crisis.

Or look at Rep. John Boehner, R-OH, one of the members of Congress who bought health insurance stocks during the 2009 healthcare debate. Rep. Boehner fought against a government-funded insurance plan that would compete with publicly traded companies in the private sector. And those private-sector insurers saw their share prices escalate after the provision died in Congress – and after Rep. Boehner had already purchased the related stocks.

Former Rep. Dennis Hastert, R-IL, made $2 million from selling land he owned after receiving a federal earmark to build a parkway near his property. Former Sen. Judd Gregg, R-NH, helped get $70 million in funds to go toward redeveloping a U.S. Air Force base in which he and his brother had a commercial interest. And Rep. Nancy Pelosi, D-CA, bought shares of the 2008 Visa Inc. (NYSE: 
V) initial public offering (IPO) – while legislation affecting credit card companies was debated in the House. That’s just a taste of the legal insider trading going on by our elected representatives. “This is yet another prime example of how Congress passes laws that apply to us as citizens, but exempts themselves,” Money Morning reader Scott S. wrote to us. “No wonder why many of them spend hundreds of thousands to get elected to a position that pays less than $200,000; the benefits far outweigh the salary… all at the expense of the people they were elected to represent.”  A $6.3 Billion Bet Gone Bad. By Louis Basenese, Chief Investment Strategist. In yesterday’s column, I took the time to explain Wall Street’s newest accounting trick – re-hypothecation.

Today, I want to share how it led to the loss of $1.2 billion in customer funds and the ultimate demise of MF Global (Other OTC: 
MFGLQ.PK). And more importantly, what we should take away from this unfortunate situation…

Greed is Good?

MF Global’s problems didn’t start with re-hypothecation. They started with something much simpler – greed.

The firm wanted to make a bet that eurozone bonds would remain default free. I’ll concede that’s a smart bet, given the formation of the European Financial Stability Facility.

Essentially, MF Global was banking on a European version of “too big too fail” – betting that the indebted eurozone countries were too important to the global economy to let them default.

But a smart bet doesn’t translate into a risk-free bet. And leverage only magnifies risk, which is something MF Global learned the hard way.

You see, MF Global didn’t invest a modest amount in bonds of some of Europe’s most indebted nations (Italy, Spain, Belgium, Portugal and Ireland). It invested $6.3 billion. That’s equal to more than five times the firm’s book value!

Now, you might be asking yourself, how in the world was MF Global able to make such an outsized bet? With off-balance sheet transactions, of course.

(Remember, that’s how Wall Street typically tries concealing its transgressions. Case in point: Enron and special purpose entities.)

In this case, MF Global was specifically using “repurchase and reverse repurchase transactions to maturity” to keep its actions off the balance sheet.

I won’t bog you down with the details of repo-to-maturity trade. Here’s the gist…

MF Global buys a ton of European bonds with high yields maturing in 2012. It then turns around and uses those bonds as collateral to borrow money at very low interest rates.

The way this trade works out is simple…

Until the bonds mature, MF Global earns the spread – the difference between the high interest it receives on the bonds and the low interest rates it pays on the borrowed funds. When the bonds mature, MF Global uses the principal received to pay off its loans. Simple as that.

But it sounds too good to be true, doesn’t it?

Well, it seemed a bit surprising to MF Global’s CEO, Jon Corzine, too. In the firm’s most recent earnings conference call, he said, “The spread between interest earned and the financing cost of the underlying repurchase agreement has often been attractive even as the structure of the transaction themselves essentially eliminates market and financing risk.”

In other words, such risk free trades shouldn’t exist. And ultimately, they don’t.

Can You Say, “Margin Call?”

The big risk inherent in MF Global’s repo-to-maturity trades was liquidity.

At any point, MF Global’s lenders could require more collateral. And that’s exactly what they did, as the debt crisis in Europe became more uncertain.

The only problem? MF Global didn’t have any cash of its own lying around to meet the margin calls. So it pledged its customers’ funds – via re-hypothecation – as additional collateral.

The straw that broke the proverbial camel’s back came from the New York Fed.

Earlier in the year, the New York Fed designated MF Global a primary dealer, allowing it to trade directly with the bank in the buying and selling of United States government debt.

With worries mounting about MF Global’s solvency, the Fed issued a margin call of its own on Friday, October 28. And the jig was up.

MF Global filed for bankruptcy protection on Monday, October 31. Ever since then, we’ve been unearthing the details surrounding the company’s ultimate demise.

Bottom line: Leverage cuts both ways. Wall Street’s elite always seem to forget about this fundamental principle time and again. Perhaps it’s because they’re always investing with other people’s money instead of their own?

Nevertheless, let MF Global’s bankruptcy be yet another reminder that there are no risk-free trades. And that’s why we should relentlessly favor position-sizing over making outsized bets.
   December 22, 2011. Occupy Wall Street, Consider This My Gift to You… by Shah Gilani. Dear Reade.     Out of far left field, I see something coming that I never  expected.   It’s more like the coming together of pieces of a puzzle  that have eluded us for too long.   By the way, Occupy  Wall Street, if you’re listening, and I hope you are, and you’re still  floundering (which I know you are) without a cause that anybody can really wrap  their heads around, drop your drums, chants, and wanderings, and make the  coming together of this puzzle what you’re protesting.   And make what could result what you are demanding.   Because, really, this could be the mother lode.   The U.S. Securities and Exchange Commission is accusing six  former executives of Fannie Mae and Freddie Mac of playing down the risk to  investors of their firms’ aggressive fast-forward into subprime mortgages…  which caused them to implode spectacularly.   Two separate civil suits, filed last Friday, allege that the  executives “knowingly misled investors” who owned shares in the companies and  were thus deprived of critical information against which meaningful investment  decisions are generally made.   The two wards, currently under U.S. conservatorship (life  support attended by a wet-nurse), were themselves spared being sued, on account  of their signing civil non-prosecution agreements and promising to cooperate  and not dispute allegations (and also not have to admit nor deny wrongdoing).  Yet the SEC is seeking financial penalties, disgorgement, and an order barring  guilty parties from serving as officers or directors of any public companies in  the future against the implicated executives.   The SEC faces an uphill battle based on one word –  “subprime.”   The problem is, subprime has never been legally defined.   You know what it means, I know what it means, everybody knows  what it means, without knowing its exact definition. But if there’s no  definition of subprime, defense lawyers will counter that it’s not possible to  sue based on a standard that has never been defined.   How about we compare mortgages to cars and subprime to  clunkers. If you’re on my used car lot and I offer you two cars at the same  price and don’t tell you one is a clunker, is that fair? You wouldn’t need me  to define “clunker.” If I said one was a clunker, you would simply choose the  other car; after all, it’s the same price.   There is a difference, there’s a big difference.   Over on the Fannie and Freddie lots between 2006 and 2007,  they were loading up on clunkers and not telling anyone what they were  stocking. In fact, they were saying things like, “basically (we) have no  subprime exposure” in the single-family realm.   They lied.   One of the reasons they were loading up on subprime was  because Wall Street banks were eating their lunch by buying up subprime loans,  packaging them, and selling them to investors hand over fist, and Fannie and  Freddie wanted in on that very lucrative business. It’s not that they hadn’t  dabbled in subprime before; they had. But as they saw stresses in the  marketplace on the better mortgages in their portfolios, they still loaded up  on far weaker credits; also known in the business as SUBPRIME.   So what’s next?   There are going to be a lot of emails and other testimony  coming out about who knew what when, and who lied to who to make how much.   It’s going to be fun to watch this thing unfold.   But the whole point of this piece of the puzzle coming to  light is that, to make their bonuses bigger and their options worth more, these  executives leveraged their essentially “private” companies knowing that their  losses would be “socialized” (paid for by taxpayers) if their bets fell apart.   Their lies are no different than the lies told to investors  by the big banks during the credit crisis (and most of the time, for that  matter).   Yes, if the SEC wins their cases, there’s hope that the  lying executives of our biggest banks (and, if there is a God, the liars at the  Federal Reserve, too) will be brought to justice for misleading not only their  investors, and the American public that bailed them out, but also  Congress (not  that they would ever lie), who  crafted legislation to save us from another financial catastrophe without  knowing how the banks and the Fed lied to us all.   Thanks to Bloomberg LP and Fox News Networks LLC – who sued  the Fed to get them to cough up data under the Freedom of Information Act – we  know just how much they all lied.   We now know the bankers were telling lies to our faces while  being propped up by the backdoor boys at the Fed. Heck, most Fed regional bank  presidents didn’t know, the Treasury Secretary didn’t know. Nobody but the  bankers and the Fed knew that they were lying to us.   Again, courtesy of Bloomberg, here’s what they were saying,  when they were saying it, and how much money they got from the Fed to keep  their doors open on the exact dates that their borrowings peaked:   On       September 21, 2008, Morgan Stanley CEO John Mack said, “Morgan       Stanley is in the strongest possible position.” By September 29, 2008, they       had borrowed $107 billion from the Fed and took another $10 billion in       TARP money.On       January 16, 2009, Citicorp CEO Vikram Pandit said, “We have an       irreplaceable franchise.” By January 20, 2009, they had borrowed $99.5       billion from the Fed and took $45 billion in TARP money. On       January 22, 2009, Bank of America CEO Kenneth D. Lewis said, “The       diversity and strength of our company is allowing us to continue to invest       in our business to drive future profit growth.” By February 26, 2009, they       had borrowed $91.4 billion from the Fed and took $45 billion in TARP       money. On       December 16, 2008, Goldman Sachs CEO Lloyd Blankfein said, “Our       deep and global client franchise, experienced and talented people and       strong balance sheet position our firm well.” By December 31, 2008, they       had borrowed $69 billion from the Fed and took $10 billion in TARP money.On       February 23, 2009, JPMorgan Chase CEO Jamie Dimon said, “We believe       we have a fortress balance sheet.” By February 26, 2009, they had borrowed       $48 billion from the Fed and took $25 billion in TARP money. On       March 6, 2009, Wells Fargo CEO John Stumpf said, “We couldn’t feel       better about the future.” Meanwhile, as of February 26, 2009, they had       borrowed $45 billion from the Fed and took $25 billion in TARP money.   They are all liars. They should all be  prosecuted for misleading their investors, the public, and Congress.   It was these very banks that were feeding crap to Fannie and  Freddie and at the same time competing with them to grow the whole pie for all  their bonuses and stock options.   It was a giant scheme – don’t you get it?   And because they are such good liars they, the banks,  and the Fed will tell us and Congress that we can’t handle the truth and they  lied to us to protect us from the reality of how bad things really were.  Really? We need to be protected from the truth so we can  continually be lied to so they can all make more money?   Sure, that’s why total assets held by the country’s  above-named biggest banks have risen 39% since 2006. That’s why average banker  pay in 2010 was the same as it was in 2007. That’s why banks spent 33% more  money lobbying Congress from 2006 through 2010. That’s why Dodd-Frank isn’t  completed and never will be. That’s why America has become a sinkhole.   And speaking of sinkholes…   No, I’m not going to point to that former MF  Global leader Jon Corzine, who used to brag that he co-authored  Sarbanes-Oxley when he was a U.S. Senator (such an august body!), which  hopefully he will be hung by, along with the entire gallery of rogues above who  deserve the gallows… no, not him.   Time out…   In case you Occupy Wall Streeters missed the other pieces of  the puzzle, there was the list of lies the bankers foisted on us while being  aided and abetted by the lying Fed and how they should all come under the axe  of Sarbanes-Oxley, after all, it is still the law of the land. Those are the  pieces of the puzzle that need to come together.   But, alas, I digress once again; back to Freddie and Fannie.   No doubt you knew that Newt Gingrich, former Speaker of the  U.S. House of Representatives from 1995 to 1999, a House member since 1979,  author of the Contract With America, and the distinguished first House member  in history (he will like this, he is an historian, did you know?) to be  disciplined (and fined $300,000) for ethics violations. (He actually faced 84  charges during his, did I say “distinguished,” term, and quit before he could  be kicked out of that, did I already say “august,” body).   When he “quit” he said, “I’m willing to lead, but I’m not  willing to preside over cannibals.” Good for him! Because once freed, the  august historian was called upon to eat at the august table of Freddie Mac.  Of course, he didn’t approach them. He says, “I was  approached to offer strategic advice.” Nice work for $1.6 million if you can  get it, being an “historian” I mean.  And offering The Freddie …”advice on precisely what they didn’t do.”   He actually said that.   Oh, what they didn’t  do, now I get it.   The Newton bomb must have been talking about Freddie not raising the fees it charged back in 1995.   You probably don’t remember, but back then some actually,  really august members of the House wanted Freddie and Fannie to raise their  fees to make them more competitive with private mortgage outfits. There was  serious concern back then that the Government Sponsored Enterprises were too  enterprising and, with their de facto government backing, could raise money  cheaper than private outfits and outcompete them in their rather large business  space.   But Newt-to-the-rescue – the same Newt who said, “I’ve never  done a favor for Fannie or Freddie” saw to it that the proposed fees would  never see the light of day. Ah, all in a day’s work over at our august Capitol.   Is he a liar? I would never accuse anyone of being a liar,  you know me… so let me put it nicely… He is a liar.   Where was I?   A $6.3 Billion Bet Gone Bad.   By Louis Basenese, Chief Investment Strategist.  In yesterday’s column, I took the time to explain Wall Street’s newest accounting trick – re-hypothecation.   Today, I want to share how it led to the loss of $1.2 billion in customer funds and the ultimate demise of MF Global (Other OTC: MFGLQ.PK). And more importantly, what we should take away from this unfortunate situation…Greed is Good?   MF Global’s problems didn’t start with re-hypothecation. They started with something much simpler – greed.   The firm wanted to make a bet that eurozone bonds would remain default free. I’ll concede that’s a smart bet, given the formation of the European Financial Stability Facility.   Essentially, MF Global was banking on a European version of “too big too fail” – betting that the indebted eurozone countries were too important to the global economy to let them default.   But a smart bet doesn’t translate into a risk-free bet. And leverage only magnifies risk, which is something MF Global learned the hard way.     You see, MF Global didn’t invest a modest amount in bonds of some of Europe’s most indebted nations (Italy, Spain, Belgium, Portugal and Ireland). It invested $6.3 billion. That’s equal to more than five times the firm’s book value!     Now, you might be asking yourself, how in the world was MF Global able to make such an outsized bet? With off-balance sheet transactions, of course.     (Remember, that’s how Wall Street typically tries concealing its transgressions. Case in point: Enron and special purpose entities.)     In this case, MF Global was specifically using “repurchase and reverse repurchase transactions to maturity” to keep its actions off the balance sheet.     I won’t bog you down with the details of repo-to-maturity trade. Here’s the gist…     MF Global buys a ton of European bonds with high yields maturing in 2012. It then turns around and uses those bonds as collateral to borrow money at very low interest rates.     The way this trade works out is simple…    Until the bonds mature, MF Global earns the spread – the difference between the high interest it receives on the bonds and the low interest rates it pays on the borrowed funds. When the bonds mature,   MF Global uses the principal received to pay off its loans. Simple as that.     But it sounds too good to be true, doesn’t it?    Well, it seemed a bit surprising to MF Global’s CEO, Jon Corzine, too. In the firm’s most recent earnings conference call, he said, “The spread between interest earned and the financing cost of the underlying repurchase agreement has often been attractive even as the structure of the transaction themselves essentially eliminates market and financing risk.”     In other words, such risk free trades shouldn’t exist. And ultimately, they don’t.   Can You Say, “Margin Call?”     The big risk inherent in MF Global’s repo-to-maturity trades was liquidity.     At any point, MF Global’s lenders could require more collateral. And that’s exactly what they did, as the debt crisis in Europe became more uncertain.     The only problem? MF Global didn’t have any cash of its own lying around to meet the margin calls. So it pledged its customers’ funds – via re-hypothecation – as additional collateral.     The straw that broke the proverbial camel’s back came from the New York Fed.     Earlier in the year, the New York Fed designated MF Global a primary dealer, allowing it to trade directly with the bank in the buying and selling of United States government debt.     With worries mounting about MF Global’s solvency, the Fed issued a margin call of its own on Friday, October 28. And the jig was up.   MF Global filed for bankruptcy protection on Monday, October 31. Ever since then, we’ve been unearthing the details surrounding the company’s ultimate demise.     Bottom line: Leverage cuts both ways. Wall Street’s elite always seem to forget about this fundamental principle time and again. Perhaps it’s because they’re always investing with other people’s money instead of their own?     Nevertheless, let MF Global’s bankruptcy be yet another reminder that there are no risk-free trades. And that’s why we should relentlessly favor position-sizing over making outsized bets. Monday, January 9, 2012.12:00 a.m… The Wall Street JournalNew York TIMES:  Wall Street Prepares to Take Sharp Pay Cut. By LIZ RAPPAPORT And COLIN BARRA dismal year means Wall Street is about to take a big hit to its wallet. As banks prepare to report fourth-quarter results and make final bonus decisions for 2011, total compensation is likely to be the lowest since 2008, when the financial crisis destroyed some firms and left many survivors on government life support.  While still lofty compared to the rest of the U.S., pay for some Wall Street workers will be the lowest in years, at a time when critics have been lashing out at what they deem excessive finance-industry compensation. At Goldman Sachs Group Inc., many of the roughly 400 partners can expect to see their 2011 pay cut at least in half from 2010, according to people familiar with the situation. Pay for some employees in the New York company’s fixed-income trading business will shrink by 60%, with some workers getting no bonus, these people said. Morgan Stanley is expected to shrink bonuses for some investment bankers and traders by 30% to 40% from 2010, said people familiar with the matter. Pay worries have been mounting up and down Wall Street for months amid lower trading revenue, languid deal-making, new regulations and anxiety about the global economy. Other pressures include weak financial-company stock prices and sour public sentiment that culminated in the Occupy Wall Street encampment in New York. J.P. Morgan Chase & Co., one of the biggest banks, is set to report earnings Friday, followed next week by Goldman and other major banking firms. For most of 2011, Wall Street executives offered few specifics about how the lackluster year would affect compensation, especially the large portion that will be paid out as bonuses in the coming weeks. Each quarter the banks set aside a percentage of revenue for benefit costs. Through the first three quarters of 2011, total compensation and benefit costs at 34 publicly traded financial firms tracked by The Wall Street Journal were on pace for a record-high $172 billion. The calculation is based on the companies’ reported results and projections by analysts. But industry observers expect that when all is said and done for the year, many firms will adjust their benefit costs sharply downward, partly to appease shareholders frustrated by soft profits. If the companies apply the same ratio for 2011 as 2010, overall compensation and benefits for last year would be $159 billion for the 34 companies tracked by the Journal, the smallest total since 2008. At Goldman, average compensation per employee would fall 10.7% to $385,000 for 2011 from $431,000 in 2010 if the New York company keeps its payout rate steady in the fourth quarter. In 2007, Goldman employees received an average of $661,000 each, and people throughout the firm are bracing for disappointment. Analysts who follow Goldman expect the securities firm’s revenue to fall 23% for 2011 compared with 2010, according to a survey by FactSet Research Systems Inc. For the typical Goldman partner, pay for 2011, including base salary and bonus, is likely to range from $3 million to $6.5 million, according to people familiar with the matter. In better years, payouts have been at least twice as high, these people said. On Friday, Sanford C. Bernstein analyst Brad Hintz said he expects Goldman to earn just 77 cents a share for the fourth quarter, down from his previous estimate of $3.15 a share. “We do not expect a robust recovery in 2012,” Mr. Hintz wrote. More ominously, executives at some financial firms foresee longer-term changes as a result of economic and regulatory shifts that will limit profitability. “Companies definitely have to realize the party as they know it is over,” said Rose Marie Orens, a senior partner at Compensation Advisory Partners, a New York firm that works with compensation committees at public-company boards. In many cases, pay cuts on Wall Street will come mostly at the top because that is where the largest bonuses are paid. Before the crisis, financial firms competed aggressively to attract and keep up-and-coming talent to groom for the future.As a result of the looming cuts, though, some midlevel employees at investment banks might make more than their managing-director or executive bosses this year, said people familiar with the matter. Wall Street has always reined in pay when times are tough, but competition for star traders and investment bankers discouraged firms from making big overall changes. In the wake of the financial crisis, some firms shrank bonuses and increased base salaries to bend to political pressure. Regulators argued that heavy reliance on bonuses encouraged excessive risk-taking. A broader reckoning is under way now amid widespread cost-cutting. In the second half of 2011, two dozen major global banks and securities firms made plans for a total of 103,000 job cuts. For many Wall Street executives and staff, the new pay structures and cuts in company perks already have hampered their lifestyles. Instead of large cash payouts each year, bankers now are getting more and more of their own companies’ shares. Some cash-strapped employees have sold second homes or gotten loans from their companies to pay bills, said people familiar with the matter. For now, companies are still using larger chunks of their revenue for employee pay. The Journal’s analysis projects that 36% of revenue will go toward compensation and benefits in 2011, up from 33% in 2010. The analysis assumes that the banks, securities firms, asset managers, exchange operators and other companies for the fourth quarter will hold steady the percentage of revenue used for compensation as in the first three quarters. They don’t always do this, however: In each of the past two years, Goldman has reduced its pay ratio in the fourth quarter, holding down compensation and boosting profits. One bright spot this year could be bonuses given out in stock. The stock-price slide that battered most financial firms in 2011, wiping out $295 billion in market capitalization from the 34 companies in the Journal’s analysis, means that stock-based bonuses about to be doled out will be cheap compared with previous years. That could mean a big windfall down the road for employees if financial firms’ stocks climb. —Aaron Lucchetti contributed to this article. Write to Liz Rappaport at liz.rappaport@wsj.com Fannie Mae CEO to resign By James O’Toole@CNNMoneyJanuary 10, 2012: 6:13 PM ET   Fannie Mae CEO Michael Williams. NEW YORK (CNNMoney) — Fannie Mae CEO Michael Williams plans to resign, the government-controlled mortgage giant said Tuesday.

Williams, who took over as president and CEO of the troubled company in 2009, will continue as CEO until Fannie Mae’s board names a successor.

The firm did not provide a specific reason for Williams’ departure; in a statement, Williams said only that he had decided that “the time is right to turn over the reins to a new leader.”

Williams will leave behind a firm still struggling to get its finances in order.

In November, Fannie Mae (
FNMAFortune 500) reported a net third-quarter loss of $5.1 billion. The loss forced the firm to ask for another $7.8 billion in funding from the Treasury Department, a request that took its bailout total to $112.6 billion.

Federal regulators put Fannie Mae and fellow government-sponsored enterprise Freddie Mac (
FMCCFortune 500) into conservatorship during the financial meltdown in September 2008. The sister companies now depend on government help to cover losses on the mortgages they own or guarantee.

In October, Freddie Mac CEO Ed Haldeman also announced 
plans to step down at some point this year.

Williams and Haldeman have 
faced scrutiny in recent months for their hefty paychecks, granted even as their firms rely on taxpayer support. The targets for their 2011 pay, which will include deferred compensation, are set at about $6 million a piece.

In December, the Securities and Exchange Commission charged 
six former executives of Fannie Mae and Freddie Mac, including former Fannie CEO Daniel Mudd and former Freddie chief Richard Syron with securities fraud. The SEC alleges that the executives misrepresented the firms’ holdings of high-risk mortgage loans ahead of the financial crisis. Can anyone save Fannie Mae and Freddie Mac? By Paul R. La Monica @lamonicabuzz January 11, 2012: 1:45 PM ET. Former Treasury Secretary Henry Paulson put mortgage agencies Fannie Mae and Freddie Mac into conservatorship in 2008. But little progress has been made since to help them. NEW YORK (CNNMoney) — It has been more than three years since then Treasury Secretary Henry Paulson fired his famous metaphorical bazooka and the federal government seized control of mortgage agencies Fannie Mae and Freddie Mac. Sadly, Fannie and Freddie are still a cause for worry and a source of national embarrassment. Late Tuesday, Fannie Mae said that CEO Mike Williams was stepping down sometime this year. That follows the news late last year that Freddie Mac CEO Ed Haldeman was also planning to leave. Former Fannie CEO Daniel Mudd and former Freddie CEO Richard Syron have each been charged with fraud by the Securities and Exchange Commission. Both agencies, which play key roles in helping to secure financing for homeowners, have continued to rack up sizeable financial losses over the past few years. It is estimated that their bailout will eventually cost taxpayers as much as $124 billion through 2014. Yet, not much has been done to try and change the two companies for the better. There was shockingly little in the way of actual reform for Fannie (FNMAFortune 500) and Freddie (FMCC,Fortune 500) in the Dodd-Frank Wall Street Reform Act that became law in 2010. Several members of Congress, including former Senator Chris Dodd and House Rep. Barney Frank, have been accused of conflicts of interest regarding Fannie and Freddie. Lawmakers have repeatedly denied that this played a role in the lack of any major new regulations for Fannie and Freddie. But the biggest problem is that the full government control of Fannie and Freddie makes the agencies convenient legislative tools for members on both sides of the aisle.Turning foreclosures into rentals For example, Congress finally agreed on a temporary extension of the payroll tax cut late last year. But to help finance that, Fannie and Freddie were forced by their overseer, the Federal Housing Finance Authority (FHFA), to raise fees they charge lenders to guarantee new loans. “The problem is that Fannie and Freddie are the cookie jar for Congress. What is going to need to happen is that Fannie and Freddie need to be moved out of conservatorship or this won’t end,” said Anthony Sanders, senior scholar with the Mercatus Center at George Mason University in Fairfax, Va. “Every time you look at the news and see Freddie Mac or Fannie Mae in a headline, you wince about what Congress and FHFA are going to ask them to do next,” Sanders added. Others argue that politicians need to rethink housing policy overall. 0:00 / 03:12 How Fannie Mae spruces up foreclosures It may be heretical for an elected official to suggest that renting is the new American dream. But as long as home ownership is still held up as the pantheon of financial success and a goal for all Americans, expect more of the same from Fannie and Freddie. “Originally, Fannie and Freddie were born out of a sensible goal to create more liquidity in the housing market. But they got co-opted for political reasons,” said Joseph Mason, professor in the department of finance at LSU’s E. J. Ourso College of Business in Baton Rouge. “Nobody in Washington has backed off the populist proposition that everyone should own a home. Until that changes, nothing will change at Fannie Mae and Freddie Mac,” he added. So what’s the solution for Fannie Mae and Freddie Mac? They need to be weaned off the government dole. Instead of having FHFA (foofa!) be their master, the free market should take that job.Fannie and Freddie must go. Here’s how. Yes, I realize that’s asking the same people who helped contribute to the 2008 financial calamity to become more involved again. But that’s still a better alternative than the status quo. “You would hope that over time there is greater private sector participation in the mortgage financing business. It’s not going to happen now given the state of the market, but continuing to use Fannie and Freddie to stimulate housing is not feasible,” said Brian Levitt, economist with OppenheimerFunds in New York. “We have to realize the way things worked before will not work in the future,” Levitt added. Exactly. What incentive is there for a bright, capable CEO to come work for Fannie or Freddie as long as the government is the ultimate boss? To be fair, Fannie Mae and Freddie Mac have cleaned up their balance sheets a bit in the past few years. They have not made the same mistakes in regard to financing bad credit risks as they did during the housing boom. But as long as older loans are a problem, who would want to lead Fannie or Freddie? It’s a thankless job. Both Williams and Haldeman were criticized for their salaries. Who needs that grief? “Fannie and Freddie probably will have a revolving door with CEOs for awhile until something is done on a permanent basis to fix them,” Sanders said. “Legacy loans are killing Fannie and Freddie. It’s an untenable position for executives right now.” But it’s not so untenable for politicians and bureaucrats. That’s the problem. The Political Scene.  The Obama Memos. The making of a post-post-partisan Presidency.  By Ryan Lizza January 30, 2012  On a frigid January evening in 2009, a week before his Inauguration, Barack Obama had dinner at the home of George Will, the Washington Post columnist, who had assembled a number of right-leaning journalists to meet the President-elect. Accepting such an invitation was a gesture on Obama’s part that signaled his desire to project an image of himself as a post-ideological politician, a Chicago Democrat eager to forge alliances with conservative Republicans on Capitol Hill. That week, Obama was still working on an Inaugural Address that would call for “an end to the petty grievances and false promises, the recriminations and worn-out dogmas that for far too long have strangled our politics.” Obama sprang coatless from his limousine and headed up the steps of Will’s yellow clapboard house. He was greeted by Will, Michael Barone, David Brooks, Charles Krauthammer, William Kristol, Lawrence Kudlow, Rich Lowry, and Peggy Noonan. They were Reaganites all, yet some had paid tribute to Obama during the campaign. Lowry, who is the editor of the National Review, called Obama “the only presidential candidate from either party about whom there is a palpable excitement.” Krauthammer, an intellectual and ornery voice on Fox News and in the pages of the Washington Post, had written that Obama would be “a president with the political intelligence of a Bill Clinton harnessed to the steely self-discipline of a Vladimir Putin,” who would “bestride the political stage as largely as did Reagan.” And Kristol, the editor of the Weekly Standard and a former aide to Dan Quayle, wrote, “I look forward to Obama’s inauguration with a surprising degree of hope and good cheer.” Over dinner, Obama searched for points of common ground. He noted that he and Kudlow agreed on a business-investment tax cut. “He loves to deal with both sides of the issue,” Kudlow later wrote. “He revels in the back and forth. And he wants to keep the dialogue going with conservatives.” Obama’s view, shared with many people at the time, was that professional pundits were wrong about American politics. It was a myth, he said, that the two political parties were impossibly divided on the big issues confronting America. The gap was surmountable. Compared with some other Western countries, where Communists and far-right parties sit in the same parliament, the gulf between Democrats and Republicans was narrow. Obama’s homily about conciliation reflected an essential component of his temperament and his view of politics. In his mid-twenties, he won the presidency of the Harvard Law Review because he was the only candidate who was trusted by both the conservative and the liberal blocs on the editorial staff. As a state senator in Springfield, when Obama represented Hyde Park-Kenwood, one of the most liberal districts in Illinois, he kept his distance from the most left-wing senators from Chicago and socialized over games of poker and golf with moderate downstate Democrats and Republicans. In 1998, after helping to pass a campaign-finance bill in the Illinois Senate, he boasted in his community paper, the Hyde Park Herald, that “the process was truly bipartisan from the start.” A few years later, Obama ran for the U.S. Senate and criticized “the pundits and the prognosticators” who like to divide the country into red states and blue states. He made a speech against the invasion of Iraq but alarmed some in the distinctly left-wing audience by pointing out that he was not a pacifist, and that he opposed only “dumb wars.” At the 2004 Democratic Convention, in Boston, Obama delivered a retooled version of the stump speech about ideological comity—“There is not a liberal America and a conservative America; there is the United States of America!”—and became a national political star. In 2006, Obama published a mild polemic, “The Audacity of Hope,” which became a blueprint for his 2008 Presidential campaign. He described politics as a system seized by two extremes. “Depending on your tastes, our condition is the natural result of radical conservatism or perverse liberalism,” he wrote. “Tom DeLay or Nancy Pelosi, big oil or greedy trial lawyers, religious zealots or gay activists, Fox News or the New York Times.” He repeated the theme later, while describing the fights between Bill Clinton and the Newt Gingrich-led House, in the nineteen-nineties: “In the back-and-forth between Clinton and Gingrich, and in the elections of 2000 and 2004, I sometimes felt as if I were watching the psychodrama of the Baby Boom generation—a tale rooted in old grudges and revenge plots hatched on a handful of college campuses long ago—played out on the national stage.” Washington, as he saw it, was self-defeatingly partisan. He believed that “any attempt by Democrats to pursue a more sharply partisan and ideological strategy misapprehends the moment we’re in.” If there was a single unifying argument that defined Obamaism from his earliest days in politics to his Presidential campaign, it was the idea of post-partisanship. He was proposing himself as a transformative figure, the man who would spring the lock. In an essay published in The Atlantic, Andrew Sullivan, a self-proclaimed conservative, reflected on Obama’s heady appeal: “Unlike any of the other candidates, he could take America—finally—past the debilitating, self-perpetuating family quarrel of the Baby Boom generation that has long engulfed all of us.” Obama was not exaggerating the toxic battle that has poisoned the culture of Washington. In the past four decades, the two political parties have become more internally homogeneous and ideologically distant. In “The Audacity of Hope,” Obama wrote longingly about American politics in the mid-twentieth century, when both parties had liberal and conservative wings that allowed centrist coalitions to form. Today, almost all liberals are Democrats and almost all conservatives are Republicans. In Washington, the center has virtually vanished. According to the political scientists Keith T. Poole and Howard Rosenthal, who have devised a widely used system to measure the ideology of members of Congress, when Obama took office there was no ideological overlap between the two parties. In the House, the most conservative Democrat, Bobby Bright, of Alabama, was farther to the left than the most liberal Republican, Joseph Cao, of Louisiana. The same was true in the Senate, where the most conservative Democrat, Ben Nelson, of Nebraska, was farther to the left than the most liberal Republican, Olympia Snowe, of Maine. According to Poole and Rosenthal’s data, both the House and the Senate are more polarized today than at any time since the eighteen-nineties.http://www.newyorker.com/reporting/2012/01/30/120130fa_fact_lizza#ixzz1kOxrNpDR America’s Financial Doomsday An historic, world-changing event is about to crush the U.S. economy and stock market. It will destroy the income, savings, investments and retirements of millions of Americans. It will plunge vast numbers of families into the nightmare of poverty … hunger … and homelessness. Only a minority of investors will survive intact. And some will actually build their wealth in the process. In this video, I’m going to reveal some very disturbing facts about America’s economic decline and how it’s now threatening your financial security. These facts are so shocking, that I’ve decided to present them to you in a special format that is absolutely clear and fully documented, starting right now … I’m Martin Weiss, founder of Weiss Research. You may know my company because every day, more than 500,000 people get our financial publications.And hundreds of thousands more have used our Weiss Ratings on banks, insurance companies and stocks to help make prudent financial decisions. You may also know us because we’ve been on TV and in the newspapers a lot lately: We were the first rating agency in the word to tell the truth, the whole truth and nothing BUT the truth about the financial mess the United States government has gotten itself into. But my story
is definitely NOT unique …
 More recently, this kind of crisis has also struck a very powerful European nation. After its leaders made the same mistake ours are making now, the country’s bonds collapsed in value, interest rates exploded to over 200%. In just six months, its stock market plunged 75%. The common people suffered tremendously: A staggering 60% of the workforce was paid only partially and received their paychecks months after they were due. As the economy collapsed, millions of average citizens fell victim to crime and corruption. The police demanded bribes for traffic violations — both real and imagined. Organized crime syndicates divvied up the country into their own private fiefdoms, profiting from protection rackets, prostitution, smuggling, narcotics-peddling and even murder for hire. The government itself admitted that the criminals owned or controlled about half of the country’s private businesses. A friend of mine said: “Many banks, including some of the largest in the country, shut down. They closed their doors forever. Our savings were wiped out. “All people could do about it was to go to their banks and hammer on locked doors. “Other people demonstrated on the streets. They carried their devalued money in miniature coffins and marched past our central bank.” All this happened in the 1990s — in Russia, formerly one of the most powerful nations on the face of the Earth. Of course, the U.S. is not Russia; we have far stronger democratic institutions. And our economy is far larger than Brazil’s, but when a nation’s larders make the same mistakes Brazil and Russia made, the consequences are invariably going to be similar. The people of Brazil and Russia paid dearly for their leaders’ blunders. Barring a miracle, the American people are also about to pay a very big price. Europe is suffering through
this same kind of crisis
RIGHT NOW!
 For a sneak preview of the doomsday event about to strike the United States, just look at the catastrophe taking place in Western Europe right now. In Greece, a friend of mine reports: “Everywhere in Greece, home values are plunging. Unemployment is soaring. One in four Greeks, including over 450,000 children, live in poverty. Crime is exploding. “Athens is beginning to look like a ghost town. Everywhere you look, shop windows are boarded up. Of those that are still open, most are running going-out-of-business sales.” Greece is not alone! But Greece is not alone! In Spain, similar stories are being told in Madrid, Barcelona and 50 other cities across the country. Tens of thousands of workers have taken to the streets to protest a problem they thought they’d NEVER see again in their lifetime: Not just 10% official unemployment like we’ve recently seen in the U.S. — but 21% official unemployment! A friend of mine in Madrid says: “You wouldn’t believe what I’m seeing here on the streets of Madrid. Beggars outnumber tourists and protesters outnumber beggars. “In front of Parliament, riot police stand watch to protect lawmakers from angry mobs. All over the country, in Viscaya, Cataluña, Andalucía, we see the same thing.” In Ireland, the government faced immediate default and was forced to impose harsh austerity measures that plunged the country into depression. In London and cities all across England, similar kinds of austerity measures recently triggered the worst riots of modern times. Entire neighborhoods went up in flames. Even large commercial buildings were set on fire, and left in ruins. Worse, this financial and social crisis is threatening to spread to countries like Italy, France and even Germany. Now, you may be thinking, “But we’redifferentNothing like that could ever happen here.” I assure you: The people of Brazil, Russia, Greece, Ireland and Spain never dreamed it could happen there, either! The truth is our own leaders have made the same financial blunders that their leaders made. As my Greek friend says: “You can’t save a nation that’s drowning in debt by throwing more debt at it any more than you could save a drowning man by throwing more water on him.” Look, in every one of these countries, the pattern is clear: First, the government spends everything it has. Next, the government borrows all it can from its people. Then, it borrows still more from foreign countries and banks. Finally … The debts become so onerous and horrendous that they trigger the doomsday event:The U.S. is now in WORSE shape
than Brazil, Russia, Greece or Spain have ever been
 Consider the high-risk gambles that super-investor Warren Buffett calls “financial weapons of mass destruction.” I’m talking about special kinds of investments called “derivatives.” They were a major cause of the real estate and debt crisis that nearly wiped out all of our largest banks in 2008 — along with the entire U.S. economy. Russia’s banks never exposed themselves to large amounts of these financial time bombs. Neither did Brazil’s banks. And you’d think that, after the 2008 meltdown, U.S. banks would have learned their lesson. But you’d be wrong. According to the Comptroller of the Currency, a division of the U.S. Treasury Department — U.S. banks held $176 trillion in derivatives at the height of the debt crisis in 2008. Today, U.S. banks hold $244 trillion in derivatives — nearly 40% moreThat fact alone places the U.S. in greater danger than many other countries, past or present. U.S. debt and obligations
are now OVER $120 TRILLION!
 America is also in great danger for another big reason. Washington is now sitting on the largest pile of debt in the history of civilization: About $14.5 trillion and counting.   Hard to visualize what that much money looks like? Maybe this will help … If you asked your bank to give you a stack of $100 bills worth one million dollars, it would look like this — a neat little pile of money … One billion dollars looks a LOT more impressive. But here’s what one trillion hundred-dollar bills would look like. And this is our current national debt: $14.5 trillion. It’s a positively staggering amount of money. And it doesn’t even begin to include the debts Washington inherited from Freddie Mac and Fannie Mae or all the money Washington owes to seniors for Social security and Medicare, or to veterans and government pensioners. Add that in, and Washington’s total obligations are over $120 trillion. But it’s not just the sheer size of our nation’s debt that’s so frightening. It’s the fact that it’s mushrooming so rapidly — at a speed that’s far greater than anything we’ve ever seen: Washington is now growing the debt by AT LEAST $1 trillion each and every year. Now, at this point, you’re probably thinking: “But surely — our leaders will ultimately do the right thing and STOP bankrupting us — right?” But the reality is that Washington has consistently made the oppositechoice. The die was cast in 2008, when the housing bubble burst and giant banks were going bust. At the time, the U.S. government could have simply allowed those who had made the big gambles to suffer the natural consequences of their actions. Instead, Washington bailed out the banks, absorbed those bad debts, and spent trillions of dollars to fight the recession. Washington lies,
the economy dies.
 At the time, some people thought that was a god idea. But look what happened. In just 12 months between 2007 and 2008, Washington TRIPLED the federal deficit from $161 billion to $459 billion. Of course, our leaders swore on a stack of Bibles that this was a one-time-only event, needed to fight the recession. They lied. Washington tripled the deficit AGAIN … to $1.4 trillion in 2009. Then, again, they solemnly promised that this, too, was temporary — for emergency purposes only. But that was a lie, too. The 2010 deficit was $1.3 trillion. Plus, the deficit for 2011 is the biggest of all: More than $1.5 trillion. And in a double-dip recession, the deficit could surge to $2 trillion dollars. All these dramatic changes and all these lies are what inevitably lead to the doomsday event that is now on the near horizon for America. Still skeptical? Then consider this shocking change … We’ve sold our American birthright
for a mess of porridge.
 In the past, Washington always borrowed nearly all the money it needed from its own citizens. But in recent years, it has borrowed most of the money from foreigners, especially China, and now it owes foreigners over $4 trillion dollars. That’s over four times MORE than it owed foreigners when the U.S. plunged into recession in the early 2000s. But it still hasn’t been enough. The White House and Congress wanted to spend even more money than Americans and foreign investors would loan us — combined. The Fed declared WAR
on the value of your money!
 So the Federal Reserve printed hundreds of billions of paper dollars and loaned most of that money to the Treasury, too. How many hundreds of billions of dollars? Let me put it into perspective for you. Remember 1999, when everyone was worried that the Y2K bug would crush our economy? Well, to avert a collapse, the Fed printed $73 billion to keep the banks from collapsing. That’s the first blip on this chart. Now let’s go to 9/11, when the terrorist attacks in New York and Washington paralyzed the economy, the Fed printed another $40 billion. That’s the second blip on the chart. Every time, the Fed cranked up the printing presses, financial experts went ballistic. They said the amounts were so huge; they might diminish the dollar’s value. And sure enough, the value of the dollar did plunge. But that was only a drop in the ocean compared to what the Fed has been doing lately. Since the big debt disaster of 2008 — when the giant Lehman Brothers failed. The Fed has printed more than $1.6 TRILLION dollars. That’s twenty-two times MORE money than the Fed created during Y2K. And it’s FORTY-ONE times more than it printed after 9/11! That’s why the buying power of your money is cratering. That’swhy your cost of living is soaring. That’s why butter has jumped 22%, gasoline has soared 35%, and coffee has skyrocketed a mind-boggling 42% — all in a single year! And that’s also why America is headed for the financial doomsday I will soon describe to you. But first …SHOCKER: 
You’re only HALF as rich
as you think you are!
 Look at silver! Since the Federal Reserve began its latest money-printing binge at the height of the debt crisis, the price of silver more than quadrupled. And look at gold; it has more than doubled in price! But all this is only the beginning. In Brazil, Russia, Greece and Ireland what happened next was that revenues and tax collections began to fall. It became impossible for those governments to repay its debts. And here again, the United States is following a similar pattern: Despite the massive amounts of money Washington has thrown at it, the U.S. economy is sinking — and government revenues are falling — AGAIN! The U.S. Bureau of Labor Statistics that long-term unemployment in the United States is now at catastrophic levels. More than 14 million Americans are now out of a job — and every week, hundreds of thousands more get their pink slips. And once someone loses a job, it takes an average of more than 25 weeks — nearly half a year — to find a new one. That’s not just “a little bit” worse than during prior recessions. It’s more than 2.5 times worse than during the big recession in the mid-1970s. And it’s also far worse than during the financial crisis of 2008-2009. Plus, the housing crisis that triggered this great recession in the first place is now growing more severe. Consider the conclusions of Case-Shiller, the real estate industry’s most trusted source of home price information: They report that the median price of a home is down more than 31% and is still plunging. That’s right. The price of existing homes in America has fallen BELOW the lowest level it reached in depths of the Great Recession of 2008-2009! In short, despite the trillions Washington has blown on stimulus and bailouts, we are now staring down the barrel of a huge double-dip recession.That’s especially scary this time around. Because this time, the government isn’t putting money into the economy with more stimulus. The government has no choice but to take money OUT of the economy with budget cuts! And as the economy falls, instead of collecting more from taxes, it collects LESS. The money Washington so desperately needs to pay the interest on its debt simply vanishes. Look, throughout history, we’ve learned that when a nation becomes this deeply indebted and in this much economic trouble, the next step is always the same: In every case, the next step is the monumental event, the far greater calamity that I promised to tell you about. COMING NEXT:
The moment when all hell breaks loose … 
So what is the ultimate catastrophe that doomed the people of Russia and Brazil to decades of poverty! So what is the ultimate catastrophe that doomed the people of Russia and Brazil to decades of poverty and dependence? What isthe next bombshell that’s beginning to explode in Europe, destroying the people’s wealth and threatening to rob them of their personal freedoms? What is the historic, life-changing, world-changing event that is also about to vaporize massive amounts of wealth and potentially threaten our liberties right here in the United States of America? It’s the singular moment in time when the last investor willing to loan money to the government calls it quits. It’s when the government can no longer borrow and simply runs out of money. That’s the moment when all hell breaks loose. No, I’m not talking about what would happen if Congress simply failed to raise the debt limit like it almost did in August of 2011. That was a just a sneak preview of the true big event still dead ahead. I’m talking about, a sudden rejection of U.S. debt by the world’s investors — a creditors’ revolt that suddenly leaves Washington with no choice but to live within its means. Think about that: What would happen right now if our federal government was no longer able to find more willing lenders, no longer able to borrow money? Before you answer though, remember this: Washington has to borrow nearly half of every dollar it spends today. It has to borrow nearly half of every dollar it spends on national defense, and homeland security. It has to borrow nearly half of every dollar it pays in Social Security, Medicare benefits, and unemployment benefits, plus half of what it gives to U.S. veterans, government pensioners, the poor and the disabled. And it has to borrow half of every dollar it spends to repay money it borrowed five years ago … ten years ago … even 30 years ago. What will happen when global investors deny our application for yet another loan? When the Chinese and other foreign lenders say “No more!” to losing their shirts as Washington guts the value of the dollars they earn? When they simply say: “Sorry — but America’s line of credit is CANCELLED. Washington’s loan application is DENIED!” This is not far off. The warning signs are already here …Warning sign #1: According to Beijing officials, China, the world’s largest buyer and holder of U.S. government securities, has suffered a loss of $271.1 billion between 2003 and 2010 as a result of the dollar’s steady depreciation. Warning sign #2: In June of 2011, China’s National Development and Reform Commission announced it could lose another $578.6 billion if it continues to hold these huge loans to the U.S. Will they continue to suffer these losses passively? The answer is … Warning sign #3: Two high officials — Zhou Xiaochuan, the head of China’s central bank and Xia Bin, a member of the monetary policy committee of the central bank — are ready to bolt. Both recently made it clear that they could easily get away with a huge reduction in the amount of U.S. treasuries they own. I repeat:
This is already beginning to happen!
 Other nations are also shifting their reserves from U.S. Treasuries to gold and silver, plus oil, coal, and other tangible assets. Mexico, Russia and Thailand have recently bought well over 100 tons of gold instead of U.S. treasuries. Even Tanzania is planning to shun the dollar and shift its reserves into gold! Gains of 245% … 369% …
and more are possible!
 Put simply, that fateful day — when Washington is no longer able to borrow the money it desperately needs is speeding toward us like a runaway freight train. This is why Congressman Ron Paul recently issued this somber warning: “At the present time the Chinese have backed off from what they’re loaning us, interest rates are starting to go up, inflation factors are coming up. “Believe me, that next step is a currency crisis because there will be a rejection of the dollar. The rejection of the dollar is a big, big event.”Congressman Paul is correct. The worst-case scenario … When Washington can no longer borrow money, it will have no choice but to immediately slash spending. And since nearly half of every dollar it spends is borrowed, our leaders will have no choice but to radically reduce, delay or even cancel payments to seniors, veterans, the poor, the disabled and pensioners. Millions who count on government checks will suddenly find themselves on the ropes, struggling to survive. Therefore, with government programs slashed or cancelled … With consumers paralyzed in fear … With the U.S. economy in intensive care … With tax revenues plunging, and … With global investors refusing to lend more money to Uncle Sam … Here is the worst-case scenario — the scenario I fear the most … Hunger and homelessness explode to pandemic levels from coast to coast. The victims take to the streets. Rallies turn into demonstrations … then, into protests … and finally, into riots. With law enforcement severely crippled by the spending cuts, crime skyrockets. With fire departments running at austerity levels, cities burn. With emergency services and hospitals out of money, people die. As we saw in Brazil and Russia, Washington has no choice but to restore order by taking away your personal freedoms. And never forget this final, devastating fact: No bank … no government … nogroup of nations … is rich enough to save America. Members of Congress:
“Armageddon”
“A Fiscal Titanic”
“A Death Spiral”
 Still finding all this hard to believe? Then consider these ten former heads of the Council of Economic Advisors. They are the men and women who directly advised presidents of both major parties, including President Obama, and all of them have since departed from their office. They recently wrote that that the next debt crisis could, and I quote “Dwarf 2008!” That’s an absolutely shocking assertion: In 2008, Wall Street came within a hair of a massive, devastating meltdown. Virtually ALL of our largest banks were pushed to the brink of failure. The entire country was only a few hours away from a fatal collapse. Now, these ten former White House advisors are warning that this next debt crisis could dwarf the last one. Why? What could cause that? They say it’s precisely the doomsday event I just told you about: The fact that one day foreigners may simply stop lending more of their money to the United States. And these ten former presidential advisers are not the only ones ringing the alarm bells. Senator Mark Warner says, “We’re approaching financial Armageddon.” Senator Joe Manchin calls this crisis “A fiscal Titanic.” Admiral Mike Mullen, the chairman of the Joint Chiefs of Staff, is warning that this crisis is “the biggest threat to our national security.” Senator Mike Crapo says it is “a threat to not just our way of life, but to our national survival.” It has the power to “ … guarantee that this nation becomes a second-rate power with less opportunity and less freedom.” And David Walker — the former U.S. Comptroller General and director of the Government Accountability Office says: “The bottom line is: We’re not Greece. But we could end up with the same problems!” And mind you, these men are not extremists. They have nothing to gain by trying to scare you. They are merely following the facts to their logical conclusion. That’s what I’ve done in this report. The warnings I’ve given you are based on nothing more — and nothing less — than economic reality and historical fact. My research team and I have simply crunched the numbers and let the chips fall where they may — just like we did when we issued “D” ratings on nearly every big bank and savings and loans that subsequently failed. Just like we did when we gave a “C” rating to the United States. We have no political axe to grind. We are not beholden to Republicans, Democrats, or any other political party. Nor do we owe allegiance to Wall Street or any of the thousands of banks, companies and countries that we rate. In fact, most of them would probably prefer that we just kept our mouths shut. One giant company even threatened my life by saying “Weiss had better shut up or get a body guard.” But to quote Harry Truman, “I never give them hell. I just tell the truth and they think it’s hell.” Good luck and God bless! Martin D. Weiss, Ph.d.
Publisher, Safe Money Investor Service.  Safe Money Report
15430 Endeavour Drive
Jupiter, FL 33478
800-236-0407
561-625-6685 (Fax)
 Flashback: Romney Pleased With Geithner, Backed TARP Tuesday, 31 Jan 2012 11:27 AM By Jim Meyers More ways to share… Mixx Stumbled LinkedIn Vine Buzzflash Reddit Delicious Newstrust Technocrati   0         Mitt Romney said three years ago that he was “pleased” with the appointment of Timothy Geithner as Treasury secretary — even after it came to light that Geithner had not paid the taxes he owed.

A newly discovered video of Romney’s appearance on “Fox and Friends” also shows the former Massachusetts governor and current GOP presidential candidate saying he thought the TARP was the “right thing to do” — and calling the $1 trillion stimulus package “necessary.”

President-elect Barack Obama announced on Nov. 24, 2008, the nomination of Geithner, the president of the Federal Reserve of New York, for the Treasury secretary post. Soon thereafter, it disclosed that Geithner had failed to pay $35,000 in self-employment taxes for the years 2001 to 2004, which he termed an honest mistake.

During Romney’s interview with the Fox News Channel, he was asked whether he still thought Geithner was the “right guy” for the job.

“When I heard about his announcement I must admit I was pleased,” Romney responded.

“He’s a person of accomplishment and skill. I think he’s a very bright individual and obviously we’re learning as much as we can about his tax dealings in the past and his level of integrity.

“I think it’s appropriate to really delve into this matter. If they find it was an honest mistake, then I think he should be confirmed. If they find it was deliberate tax evasion, that’s a very different matter. Then a person would not be qualified.

“I certainly hope it turns out just to be an honest mistake.”

Earlier, Romney had expressed support for the Troubled Asset Relief Program (TARP), signed by President George W. Bush in October 2008, which allowed the Treasury Department to buy or insure troubled assets, including bank holdings.

Asked whether he still supported it, Romney said: “TARP was the right thing to do. TARP was designed to keep our financial system from collapsing.

“You have to have a financial system for an economy to run and TARP was designed to keep our financial system from crumbling.”

It was pointed out that TARP had bailed out banks so they could lend money, but instead had largely kept the money or used it to buy other banks.

Romney commented: “The end result was to make sure that we don’t lose our banking system. The first responsibility of a bank is not to make loans. The first responsibility of a bank is to be able to repay the depositors their deposit.

“Banks are being cautions because they’re concerned about whether loans they have already made are going to be repaid, and that’s something we can hardly be highly critical of.”

He also commented on the Obama-supported stimulus package, which eventually would cost more than $1 trillion: “If we’re going to have a stimulus plan, which I think is necessary, it should have as its centerpiece a tax reduction, which creates incentives to grow and add jobs.”
Read more on Newsmax.com: 
Flashback: Romney Pleased With Geithner, Supported TARP February 2, 2012   Bankers Committed Fraud to Get Bigger Bonuses         by Shah Gilani      Dear Reader,  In case you didn’t catch the article titled “Guilty Pleas Hit the ‘Mark’” in yesterday’s Wall Street  Journal, I’m here to make sure you don’t miss it.    This is too good.    Three former employees of Credit Suisse Group AG (NYSE:CS) were  charged with conspiracy to falsify books and records and wire fraud. They were  accused of mismarking prices on bonds in their trading books by soliciting  trumped-up prices for their withering securities from friends in the business.    By posting higher “marks” for their bonds in late 2007, they  earned big year-end bonuses.     What a shock!    What’s not a shock is that, after a bang-up 2007, Credit Suisse had  to take a $2.85 billion write-down in the first quarter of 2008. No one knows  how much of that loss was attributable to the three co-conspirators, who were  fired over their “wrongdoing.”    Two of the three accused pleaded guilty. Also not shocking is the reason  David Higgs – one who pleaded guilty – gave for his actions. He said he did it  “to remain in good favor” with bosses, who determined his bonus, and who  profited handsomely themselves from his profitable trading and inventory marks.    As for Salmaan Siddiqui, the other trader who pleaded guilty? His attorney  Ira Sorkin, the former SEC enforcement chief, said of his client, “What he did  was the result of his boss and his boss’ boss directing him to do it.”  You know what else is  shocking?    Everyone was dong this at all the brokerages, investment banks and  commercial banks that had trading desks… and only three people have been  charged.    What’s even more shocking (though not to me) is that the “system” has been  engineered over years to allow banks to hold riskier and riskier securities,  with more and more leverage, and, in the most egregious affront to sense and  safety, be allowed to mark their inventories (including exotic instruments that  no one really knew how to price) based on internal “models” and extrapolated  scenarios. Whatever that means.    Everyone up the chain, from the trader making bets to his boss, his boss’  boss, all the way up to the chairman, eats off the same plate.    And you know what they say about where you eat…    Marking your trading book within the bounds of what you can get away with  isn’t exactly condoned, but neither is it frowned upon – especially at  year-end, when bonuses are being calculated. After all, you’ll always have next  year to trade out of losses or turn them into winners.    It’s about getting paid and how much.    But don’t just blame the traders and their bosses. Blame the politicians and  the regulators who tore up sound Depression-era banking laws and coddled big  banks by “desupervising” them when deregulation didn’t deliver the whole train  to the station.    Find out where the mortgage-backed securities boom really started, who  greased some of the steepest slopes, and why and how everything leads back to bonuses.  How Deregulation  Ended Honesty in the Banking Sector    Here’s what happened, in broad strokes (borrowed from articles I’ve written  for MoneyMorning.com).     In 1988, the Basel Accord established international risk-based capital  requirements for deposit-taking commercial banks. In a byproduct of the  calculations of what constituted mortgage-related risk (traditional mortgage  loans have long maturities and are illiquid), lenders were expected to set  aside substantial reserves; however, “marketable securities” that could theoretically  be sold easily would not require much in the way of reserves.  To free up reserves for more productive pursuits, banks made a wholesale  shift from originating and holding mortgages to packaging them and holding  mortgage assets in a securitized form.    That lessened asset-quality considerations and ushered in the new era of asset-liquidity considerations.    Meanwhile, over at the U.S. Commodities Futures Trading Commission (CFTC),  the appointment of free-market disciple Wendy Gramm (wife of then-U.S. Sen.  Phil Gramm (R-Tex.)) as chairman would result in her successful 1989 and 1993 exemption  of swaps and derivatives from all regulation.    These actions would turn out to be consequential in the reign of terror that  was to come…    In 1993, with her agenda accomplished, Wendy Gramm resigned from her CFTC  post to take a seat on the Enron Corp. board as a member of its audit  committee. We all know what happened there. (Wait a minute; I did say she was  on the audit committee, right?)    Of course, Enron’s fraud and implosion became the poster child for  deregulation run amok.    It ultimately helped spawn Sarbanes-Oxley legislation, which has its own issues, but nonetheless has prevented all kinds  of fraud and inappropriate behavior on account of the fact that top executives  have to attest to the veracity of, and sign off on, all financial documents and  other “stuff.”    Now, don’t lose any sleep over the fact that of all the CEOs and CFOs and  other muckety-muck multi-multi-millionaire executives that ran and still run  the too-big-to-fail banks and the banks and investment banks that did fail or  were merged (because they failed but were valuable to banks who wanted to make  themselves bigger so they would never be allowed to fail) ever were charged  with any crime under Sarbanes-Oxley.    Why shouldn’t you worry? Because, silly, there’s a concerted effort to do  away with the law. After all, don’t you know, it hampers business from creating  jobs, which we desperately need?  Hold on.    Sorry. I just returned from the bathroom, where I was getting sick.     Anyway, the constant flow of money to lobbyists and into legislators’  campaign coffers was paying off for banking interests.    The Fed, under Chairman Greenspan, along .  With Robert Rubin and Larry  Summers, was methodically deconstructing the foundation of the Depression-era  Glass-Steagall Act.   The final breaching of the wall occurred in 1998, when Citibank was bought  by Travelers.  The deal married Citibank, a commercial bank, with Travelers’ Solomon, Smith  Barney investment bank, and the Travelers insurance business.  There was only one problem: The deal was clearly illegal in light of  Glass-Steagall and the Bank  Holding Company Act of 1956. However, a legal loophole in the 1956 BHC Act  gave the new Citicorp a five-year window to change the landscape, or the deal  would have to be unwound.  Phil Gramm – the fire breathing free-marketer, Texas senator, and  then-chairman of the U.S. Senate Committee on Banking, Housing and Urban  Affairs (and loving husband of Wendy) – rode to the rescue, propelled by a sea  of more than $300 million in lobbying and campaign contributions.  In 1999, in the ultimate proof that money is power, U.S. President Bill  Clinton signed into law the Gramm-Leach-Bliley  Financial Services Modernization Act, at once doing away with  Glass-Steagall and the 1956 BHC Act, and crowning Citigroup Inc. (NYSE:C) as the new “King of the Hill.”  From his position of power, Sen. Gramm consistently leveraged his Ph.D. in  economics and free-market ideology to espouse the virtues of subprime lending,  where he famously once stated: “I look at subprime lending and I see the  American Dream in action.”   If helping struggling borrowers pursue their homeownership dreams was such a  noble cause, it might have been incumbent upon the senator to not block  legislation advocating the curtailment of predatory lending practices.  Oh well. Let’s not quibble with a Senator.  From 1989 through 2002, federal records show that Sen. Gramm was the top  recipient of contributions from commercial banks and among the top five  recipients of campaign contributions from Wall Street. (See my article “How Subprime Borrowing Fueled the Credit Crisis.”)  Since moving on from the Senate in 2002 to mega-universal Swiss banking  giant UBS AG (NYSE:UBS), where he serves as an investment banker and  lobbyist, Gramm makes no apologies.  “The markets have worked better than you might have thought,” he has been  quoted as saying. “There is this idea afloat that if you had more regulation  you would have fewer mistakes. I don’t see any evidence in our history or  anybody else’s to substantiate that.”  On April 28, 2004, in a fitting (and perhaps flagrant) final act of  eviscerating prudent regulation, the SEC ruled that investment banks could  essentially determine their own net capital.  The insanity of that allowance is only surpassed by the fact that the SEC  allowed the change because it was simultaneously demanding greater scrutiny of  the books and records of what were the holding companies of investment banks  and all their affiliates.   The tragedy is that the SEC never used its new powers to examine the banks.  The idea was that Consolidated Supervised Entities (CSEs) could use internal  “models” to determine risk and compliance with net capital requirements.  In reality, what the investment banks did was essentially re-cast  hybrid capital instruments, subordinated debt, deferred tax returns, and  securities with no ready market into “healthy” capital assets, against which  they reduced reserve requirements for net capital calculations and increased  their leverage to as much as 30:1. (Here’s “How Wall Street Manufactures Financial Services Products,”  an insider’s look at how greed on Wall Street results in unscrupulous  investment instruments.)  When the meltdown came, the leverage and concentration of bad assets quickly  resulted in the shotgun marriage of insolvent Bear Stearns Cos. to JP Morgan  Chase & Co. (NYSE:JPM), the bankruptcy of Lehman Brothers Holding, the  sale of Merrill Lynch to Bank of America Corp. (NYSE:BAC), and the  rushed acceptance of applications by Goldman Sachs (NYSE:GS) and Morgan  Stanley (NYSE:MS) to convert to bank holding companies so they could feed  at the taxpayer bailout trough and feast on the Fed’s new smörgåsbord of  liquidity handouts.   There are no more CSEs (the SEC  announced an end to that program in September). The old investment bank  model is dead. The motivation for bankers to undermine and inhibit prudent regulation is inherent in banker compensation incentives. The Journal of Financial Research sums up the problem on compensation  by concluding: “Firm characteristics that influence managerial compensation  include leverage (as a measure of observable risk) market-to-book ratio of  assets, size and shareholder return. Evidence suggests that Bank Holding  Companies may be exploiting the deposit insurance mechanism because leverage is  a significant factor in their results for incentive-based components of  compensation. Our results strongly support the view that fundamental shifts in  business activities of Bank Holding Companies have influenced their  compensation strategies.”  And we wonder if bankers are good people or merely compensation and bonus  whores…  You do the math.  As far as telling you what’s wrong with America – a lot of you wrote  in to say you DO want to know – this is part of it. But we can see this part  clearly.  What we can’t see is how we really got here, where here is,  and where we’re going next.  You’ll get that on Sunday.  Not because I want to ruin your Super Bowl Sunday. But because I hope you  pass it along to the friends you’ll gather with later in the day, and before  the beer flows and the game starts, maybe you’ll ask yourself and ask your  friends… is this really happening?  Shah. February 3, 2012 By Shah Gilani, Capital Waves Strategist, Money Morning What may be good news for delinquent credit card holders may also be really bad news for banks.

It turns out the “robo-signing” of foreclosure affidavits is just the tip of the iceberg.

In what one judge called “robo-testimony,” falsely attested-to statements by bank document custodians have been submitted in courts around the country by banks trying to win judgments against delinquent credit card debtors.

Apparently, tens of millions of credit cards issued by banks have not been accompanied by good recordkeeping, either.

Chasing down delinquent borrowers in court requires original credit agreements and accurate payment histories to verify outstanding balances and claims.

As it turns out, banks aren’t providing them – either to the courts or to third-party 
debt collection companies that buy uncollected debts for pennies on the dollar.

As a result of these shoddy practices, judgments already granted to banks could be overturned and they could be sued by state attorney generals or pursued by the Consumer Financial Protection Bureau.

The same banks could even be potentially charged by the Justice Department under the Racketeer Influenced and Corrupt Organizations (RICO) Statutes for selling dubiously documented accounts to debt collection companies.

While some debtors will take comfort in what they read here, investors in banks may want to question how legal issues and regulatory investigations will impact their 
stocks.   Questionable bank documentation submitted to courts may be the reason JPMorgan Chase & Co. (NYSE: JPM) abruptly abandoned over 1,000 debt collection lawsuits in April 2011.

However, debtors whose pending cases were dismissed aren’t out of the woods yet. All of Chases’ suits were dismissed “without prejudice,” meaning Chase can re-file the cases in the future. 
A Debt Collector’s Dirty Trick The only relief long-delinquent borrowers have is the statute of limitations imposed by most states on debt collection.

Statutes of limitation, which are typically between two and 15 years, are by themselves no guarantee that debt collection agencies, which buy accounts from banks, won’t try to still collect.

Some debt collection companies entice delinquent borrowers who are beyond their statute of limitation requirements to make payments by offering to reduce the whole amount owed.

Their aim is to get the borrower to make even a single payment. It’s an old trick.

By paying anything on a debt that is past the statute of limitations, the debt is brought back to life again and the statute of limitations clock starts all over from the date of the new payment.

It’s why debtors are browbeaten and enticed to make payments through mailings, harassing calls, and “transfer of balance” offers for new credit cards, which requires old debts to be rolled into the new credit agreement.

The industry term for restarting the clock on old debts is called “re-aging.”

The Federal 
Trade Commission’s Bureau of Consumer Protection calls it illegal and abusive.

Last month the FTC and the Justice Department settled with one of the country’s biggest debt collection companies in a case with repercussions for the entire debt collection industry.

Asset Acceptance Capital Corp., which the FTC had charged with violations of federal law – including that it “failed to tell debtors they couldn’t be sued” when they tricked them into making payments to “re-age” old debts – was fined $2.5 million without admitting or denying wrongdoing.

I contacted Erik Kardatzke of the Coral Gables, FL, law firm Debt Defense, P.L., a prominent debtor-rights defense attorney who was quoted in a June 2011 Wall Street Journal article about Chase’s dismissed suits, to ask about new pending lawsuits.

“I don’t see any pending suits by JPMorgan Chase or any of the attorneys or law firms that usually work for them,” he said. “I mean, not a single one. This is highly unusual.”

Kardatzke is a former debt collection attorney who became disillusioned with the practices of credit card companies and debt collectors preying on consumers.

“I would see victims of predatory lending who would charge $300 on a credit card, and be sued for $3,000 four years later based upon late charges, over the limit fees and 30% interest. I noticed that there was rarely an attorney defending consumers and decided to fill that need,” he told me.

The FTC, upon fining Asset Acceptance, announced additional enforcement actions are pending.

They are now joined by the Consumer Financial Protection Bureau, which has the authority to go after banks for abusive collection tactics. 
Another Headache for Bank Stocks All this attention on banks’ credit card collection efforts isn’t going to help their revenues and earnings.

Not only could credit card borrowers stop paying if they don’t believe banks have proper documentation to go after them, but debt collection companies could sue banks for knowingly providing them inadequate or falsified debtor information when they bought uncollected accounts.

The big banks haven’t been able to settle charges over their robo-signing of foreclosure documents, which by some estimates could amount to over $25 billion in fines and consumer remuneration in some form or another.

Now, with charges of illegal robo-testimony being used to win court judgments in credit card collection cases, the banks now face another huge legal battle with potentially enormous bottom line consequences.

Robo-signing is just the beginning for the banks. 
[Editor’s Note: If you’re fed up with the rampant corruption, double-dealing, and protection of Wall Street by Washington (at the expense of the taxpayers on America’s Main Street), then you need to read Shah Gilani’s Wall Street Insights & Indictments newsletter. As a retired hedge-fund manager, Gilani is a former Wall Street insider   Monday, February 06, 2012 What If We’re Beyond Mere Policy Tweaks? The nation’s ills cannot be fixed by thousands of pages of regulation or more policy tweaks. Only a profound cultural transformation can address our problems. The mainstream view uniting the entire political spectrum is that all our financial problems can be fixed by what amounts to top-down, centralized policy tweaks and regulation: for example, tweaking policies to “tax the rich,” limit the size of “too big to fail” financial institutions, regulate credit default swaps, lower the cost of healthcare (a.k.a. sickcare), limit the abuses of student loans to pay for online diploma mills, and on and on and on. But what if the rot is already beyond the reach of more top-down policy tweaks?Consider the recent healthcare legislation: thousands of pages of obtuse regulations that require a veritable army of regulators staffing a sprawling fiefdom with the net result of uncertain savings based on a board somewhere in the labyrinth establishing “best practices” that will magically cut costs in a system that expands by 9% a year, each and every year, a system so bloated with fraud, embezzlement and waste that the total sum squandered is incalculable, but estimated at around 40%, minimum. Does anyone really think that the lack of another centralized Federal fiefdom and thousands of pages of additional regulation is what ails sickcare? Of course not. In effect, we as a society have completely lost the ability to honestly admit a problem exists and that the solution is not to paper it all over with more regulation and insatible, ever-rising debt-based funding, paid for by our children, grandchildren, and their children.   Consider the National Security State, busily constructing rectangular mountains of office space to house its vast, unchecked, oversight-free Empire. Does anyone actually know what tens of thousands of highly-paid people are doing in all these sprawling fiefdoms of National Security? And I don’t mean the Pentagon or the NSA–the buildings sprouting all over the tonier bits of D.C. and its suburbia are the metastasizing results of the “green light” given to anything remotely connected to GWOT–the global war on terror, the war that by definition can never be declared won or even ended, the war that always requires more funding lest one “event” slip through the cracks. If nobody in the elected chain of command actually knows where all this “black budget” money is going, what are the odds it’s being spent wisely and prudently?“No meaningful oversight” inevitably leads to abuse of budget and power. If we haven’t learned that, then we are well on the way to financial and political self-destruction. Consider the Glass-Steagall Act, at 37 pages in length, and the 2,319-page monstrosity of corrupted Federal power, the “Dodd-Frank Wall Street Reform and Consumer Protection Act:” (Source) Back in December, Nick Schulz helped put the size of the 2,074-page healthcare bill into some historical context by comparing its length to some previous bills that rank among the most consequential in U.S. history, like the 82-page Social Security Act of 1935 and the 74-page Civil Rights Act of 1964. Now that Congress has passed the “Dodd-Frank Wall Street Reform and Consumer Protection Act,” it might be a good time to compare the 2,319-page financial reform bill (245 pages longer than the healthcare bill) to the previous bills listed below (and see graph) that are considered among the most consequential legislative acts for banking and finance. 1. Federal Reserve Act (1913) – 31 pages. 2. Glass-Steagall Act (1933) – 37 pages. Though few have delved into the ramifications of this monstrous power-grab, it seems that the Executive Branch has grabbed potentially unprecedented powers with little if any oversight by Congress–all in the supremely Orwellian pursuit of “consumer protection.” If a 37-page bill took care of the problem in 1933, why can’t the same 37-page bill be re-instated? Why, indeed. The reason is that the bill impedes the flow of public funds to favored cartels and opportunities for financial looting by these cartels, and so a monster is created that nobody understands and which limits or simply overwhelms oversight by elected officials outside the Imperial Presidency. The entire financial and political infrastructure is corrupt. Perhaps it is time to note that the most thoroughly, venally, pervasively corrupt nations on Earth all have abundant regulations against corruption. Regulations don’t stop or limit corruption, fraud and embezzlement by magic. Sickcare is beyond being “fixed” by thousands of pages of policy tweaks, limitations and regulations. The financial system is beyond being “fixed” by thousands of pages of arcane regulations that only serve to obfuscate the looting and predation while enshrining another vast Federal fiefdom that harvests the national income while accomplishing nothing of substance. Regulation only functions if the culture and the society have a value system and a will to enforce it. The American people have lost those values and the will. Complicity reigns supreme. Instead we support going through the motions of adding layers of bureaucratic bloat, and listening to Soaring Rhetoric (TM) from bloviated politicos who promise us “prosperity,” “recovery” and all the rest without any sacrifice or engagement. Going through the motions never solved anything. 2,000-page regulatory thickets are one thing, and one thing only: purposeful obfuscation via complexity. ( America Is Just Going Through the Motions (November 19, 2010): A profound realization hit me last night: America is just going through the motions now–of reform, of healthcare, of everything. America’s leadership–both its elected and appointed officials, and its “shadow” Financial Power Elite leadership (the corporatocracy of crony Capitalist cartels and rentier/speculative parasites) are just going through the motions of financial reform. And the American public is resigned to just going through the motions of accepting the travesty of a mockery of a sham that is called “reform,” too, even as they understand in their bones that nothing has been fixed and the next financial crisis has already been cooked into their future. One of our few reliable voice of reason in the world of finance, Simon Johnson, has already laid bare how the the next financial crisis and inevitable bailout of the banking parasites will unfold. His article in The New Republic Way Too Big To Fail reveals how the “too big to fail” banks have shredded the wet paper bag of “reform” Congress went through the motions of conjuring up: they are quickly expanding globally, beyond the reach of any mere nation-state’s grasp. Let’s be honest, shall we? There never was any fire for real reform of the financial sector. It was all rote, a foul, stupid play-act, a passionless pantomime of “caring” and fake-“progressiveness” displayed for propaganda purposes. Real reform occurs when the political class of toadies, sycophants, leeches and cowards is forced by a near-universal public outrage to pass simple, powerful legislation and the budgetary resources to enforce that legislation. For example, the landmark environmental laws of the 1970s. Rivers in America used to catch fire before this Federal legislation; now they don’t. There was a true passion and desire in the nation to clean up the industrial pollution that was destroying the nation’s commons. There was no real fire for financial reform in the politico class. All they had to do was wait out the public’s outrage over TARP and then get down to the business of collecting contributions from financial players and their armies of toady-lobbyists. So Washington went through the motions of “reform” and the regulatory agencies went through the motions of “enforcing” existing regulations. But nobody was indicted, no RICO suits filed on behalf of the defrauded, no billion-dollar penalties slapped on those who carted off tens of billions in embezzled, ill-gotten gains, and no perps forced into bankruptcy. In other words, nothing got done except another layer of useless, overpaid bureaucracy was added to the bloated, overstuffed Federal payroll. The exact same dynamic is visible in the “healthcare” (a.k.a. sickcare) “reform.” 2,000 pages of mind-numbing slicing and dicing of the vast flood of national treasure that flows to the sickcare cartels, and nary a single word on the actual health of the American public, which continues to deteriorate on multiple fronts. The “reform” is to add multiple layers of bureaucracy and additional costs on a bloated, out-of-control system in which 50% of the money is already wasted on fraud, needless procedures/meds and paper shuffling. It was all about going through the motions of reforming a system everyone knows is beyond dysfunctional. The painful truth is that we are far beyond the point where policy/legalist regulatory tweaks will actually fix what’s wrong with America. The rot isn’t just financial or political; those are real enough, but they are mere reflections of a profound social, cultural, yes, spiritual rot. This is the great illusion: that our financial and political crises can be resolved with top-down, centralized financial reforms of one ideological flavor or another. It is abundantly clear that our crises extend far beyond a lack of regulation or policy tweaks. We cling to this illusion because it is easy and comforting; the problems can all be solved without any work or sacrifice on our part. Our complicity in the corruption is never mentioned: our votes for kleptocractic politico toadies who promise us that our share of Federal swag will not be sacrificed, our interest payments to the banking cartel/oligarchy, our acceptance of bogus statistics, bogus “reforms” and ceaseless propaganda as legitimate, and lastly, our silence in the face of destructive deficits, lest our share of the swag be cut. This is how once-great Empires end: toothless regulations are passed by bought-and-paid-for legislatures for the purposes of perception management, and a populace addled by constant entertainments and staged combats in the Coliseum listlessly pursues their “right” to bread and circuses of distraction. If this recession strikes you as different from previous downturns, you might be interested in my new book An Unconventional Guide to Investing in Troubled Times (print edition)orKindle ebook format. You can read the ebook on any computer, smart phone, iPad, etc. Click here for links to Kindle apps and Chapter One. Jesse’s Café Américain “You have lived longer than I have and perhaps may have formed a different judgment on better grounds; but my observations do not enable me to say I think integrity the characteristic of wealth. In general I believe the decisions of the people, in a body, will be more honest and more disinterested than those of wealthy men.” Thomas Jefferson, August 26, 1776, Letter to Edmund Pendleton Posted byJesseat12:50 AM 06 February 2012 MF Global Collapsed in the Face of a $310 Million Margin Call Made by ‘Undisclosed Party’

The margin call was predicted here about day two as I recall. The question in my mind is the extent that JP Morgan and any of their other bankers and credit line holders played in this.

It will be interesting to see how this case progresses from the Giddens-Freeh bankruptcy team and into the hands of the regulators and Justice Department.

So far (for the past three years) the Obama Administration has been adverse to looking too far into these sorts of cases before throwing a waiver or settlement without admission of any guilt on the table.
 Bloomberg
MF Global’s $310 Million Margin Call Exceeded Its Market Value
By Matthew Leising
February 06, 2012, 8:33 PM EST
Feb. 7 (Bloomberg) — MF Global Holdings Ltd., the futures broker that filed the eighth-largest bankruptcy in October, faced a $310 million margin call on its final day that exceeded its market value.
Calls for payments tied to bets MF Global made on European sovereign debt increased Oct. 24 and continued through Oct. 31, the day the futures broker formerly run by Jon Corzine filed for bankruptcy protection, according to a report yesterday from James Giddens, a trustee overseeing the brokerage’s liquidation. MF Global had a market value of $198 million on Oct. 28 as it held $6.3 billion in European sovereign-debt trades.

After tracing 840 transactions of $327 billion in the company’s final days, Giddens is still analyzing where some of the $1.2 billion in missing customer money “ended up,” he said in the report. Corzine’s firm failed after credit-rating downgrades, a record quarterly loss andrevelations about its $6.3 billion European debt trade unnerved investors. The missing money has sparked Congressional hearings and former customers have said it undermined confidence in the futures industry.

“For three months, our investigative team has worked to understand what happened during the final days of MF Global when cash and related securities movements were not always accurately and promptly recorded due to the chaotic situation and the complexity of the transactions,” Giddens said in a statement.

The trustee didn’t disclose the identity of the counterparties making the margin calls. The trades were cleared through LCH.Clearnet Ltd., according to an MF Global contingency plan drafted before its failure. In the plan, which was designed to address the effects of a credit-rating downgrade on the company’s solvency and liquidity, MF Global questioned whether it should move the debt trades out of LCH.Clearnet.

“How will LCH respond, how much in excess margin will be required, time period, can/will they force us out?” the brokerage questioned in a section of the plan titled “immediate decision making required.” The undated plan indicated the company could move some of the cleared positions to the over- the-counter market, where it could get more favorable terms.

Congress, the Commodity Futures Trading Commission, Securities and Exchange Commission and the Justice Department are investigating events surrounding the collapse of MF Global, including the disappearance of the customer funds…
 I think it is time now to take a maximally defensive position, which for me at least means hedged gold bullion positions and cash. The bullion hedge is to guard against a liquidation event as opposed to an equity correction.

If volumes stay light the wiseguys can keep lifting this up, burning the shorts. So do not get ahead of this, but keep your powder dry if you trade, and if not, start packing up in advance of a move to higher ground. It sure is taking them a long time to spit this one out, isn’t it? We stole your money, we own the system, and there is nothing you can do about it, you pipsqueaks, so just STFU and take what we choose to give you.

Given the timing and the likely parties involved, these transfers, even when they do not involve the theft of customer funds, with the withholding of third party cash transfers by the intermediaries, done among insiders in the last week of a bankruptcy, have the appearance of a 
fraudulent conveyance.

Given that quite a bit of this money was undoubtedly held by MF Global’s bankers, who were almost certainly aware of and may have helped to precipitate the bankruptcy, we might even have a criminal conspiracy to defraud the customers and other creditors in addition to the civil actions appropriate in a fair and unbiased bankruptcy proceeding.

There is also some evidence that certain customers were privately warned by the bankers, or perhaps even parties in the company itself, a few weeks in advance, and were able to withdraw their funds from the company before it failed. Some right wing money men come to mind, among others.

This suggestion by the trustee that the MF Global personnel took the customer money unknowingly, ie. by mistake, would be hilarious if it was not being used to describe so malicious and unspeakable lapse in stewardship by the privileged, wealthy people in stealing the livelihoods from farmers and cattle ranchers among others.

What surprises me almost more than anything is that these jokers are willing to risk bringing down the financial system for a measly billion dollars, which is a fraction of what they take in personal bonuses in a good year. Is this some sort of perverse adherence to the Ferengi rules of acquistion? “Once you have their money, never give it back.”

If this stands, then nothing, no assets, held by the Anglo-American financial system are safe. When the next crisis comes, they will take what they want, starting with foreign holdings, working their way up the power and influence pyramid from there. And you can talk to the back of their hand if you don’t like it.
 Reuters
MF Global shortfall worsened as bankruptcy neared
Mon Feb 6, 2012 2:18pm EST
Feb 6 (Reuters) – The trustee liquidating MF Global Holdings Ltd’s broker-dealer unit said the shortfall in commodity customer accounts began five days before the company’s bankruptcy and grew in the days leading up to the Chapter 11 filing.

James Giddens, the trustee for MF Global Inc, said in a statement that his investigation has revealed that MF Global personnel might not have known of the shortfall at the time. (Anyone in the business must be rolling on the floor laughing at this one. Oops, sorry, we inadvertently took the customer money by mistake, a simple $1.2 billion error, and its too late to give it back to the right persons. But we’re dreadfully sorry for our innocent mistake. – Jesse)

He said he has traced a majority of cash transactions, totaling more than $105 billion, made in the last week prior to MF Global’s bankruptcy on Oct. 31, 2011. Giddens said he is working with third parties to seek more complete information about transfers to “select” parties prior to that bankruptcy.

Giddens also said it is unknown when he will be able to make more distributions to former customers.

Posted byJesseat2:19 PM John Williams: US Unemployment Hits 22.5% in Alternate Estimate
Perhaps this chart will help explain the divergence that Charles Biderman of Trimtabs sees between the official unemployment numbers and the income tax data he has been tracking.

The difference amongst the three measures revolves around the treatment of workers who desire a real full time job, but have to either settle for a part time position and other forms of under-employment that may technically qualify as a ‘job’ but not as a ‘living,’ or who have simply been removed from the government’s official attention span.
 “The seasonally-adjusted SGS Alternate Unemployment Rate reflectscurrent unemployment reporting methodology adjusted for SGS-estimated long-term discouraged workers, who were defined out of official existence in 1994. That estimate is added to the BLS estimate of U-6 unemployment, which includes short-term discouraged workers.

The U-3 unemployment rate is the monthly headline number. The U-6 unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest unemployment measure, including short-term discouraged and other marginally-attached workers as well as those forced to work part-time because they cannot find full-time employment.”
 
Read the rest of John Williams’ Shadowstats 
here.

My own estimation is that the recovery is flat-lining here and is vulnerable to a double dip which, if it does occur, will be blamed on some exterior factor such as slack European demand, problems in the emerging markets, or China. But it is still too soon to tell from the numbers.

In terms of historical perspective, the great reformer Obama is much more like Herbert Hoover or Nelson Rockefeller than a Franklin Roosevelt. He resembles a moderate Republican despite all the hysterical rhetoric from the far right.

The economy has not been reformed, and most of the problems that caused the collapse in the first place are still operating. As the corporate lobbyists were able to weaken financial reform in Dodd-Frank, so they continue to monopolize the conversation and policy discussions with their money.

I do not see genuine change happening until and unless the human misery increases enough to trigger a reaction, mass protests, or some other serious challenge to the status quo and the apathy of the fortunate. And I have quite a bit of confidence that the one percent will continue to obsessively power forward as the economy dries up until they achieve a pyrrhic victory. Winning.

This applies not only to the US but several other western countries, particularly the UK. It is also true for China which despite the gloss of their miracle economy in the western corporate media remains largely a narrow oligarchy sitting on top of a virtual slave labor camp, with a few showcase exceptions. And the western oligarchs love it. As Bill Gates said, ‘This is my kind of capitalism.’
 Posted byJesseat11:22 AM 05 February 2012 SEC Allows Some of America’s Biggest Wall St. Banks To Continually Flout the Law
The NY Times has discovered that the Banks that were rescued by the public have turned into serial fraud offenders. JP Morgan is near the top of their ranks, with Goldman Sachs and Bank of America not far behind. Only Citigroup seems to have fallen out of favor.
This is not news to any of the regular patrons of the Cafe, but it is good to see the mainstream media taking notice. Perhaps they might have a look at the Silver manipulation investigation that the CFTC has been sitting on for over three years. Not to mention the outrageous theft of customer money by MF Global and the Banks.

Obama talks a good game, and presents a moral face through the media, but an examination of his actions and his record shows that his administration serves the monied interests to the detriment of the public interest. In many cases they are merely following the same practices begun in the Clinton Administration and carried on by Bush. It is a bad situation indeed when the ‘reformer’ elected by the people has failed to reform.

He may not be as brazen and open as his Republican opponents in promoting the interests of the Wall Street, perhaps, and certainly is not as favorable to Big Oil, but the corruption of justice for all in American politics seems to have become pervasive over the last fifteen years.  
 NY Times  S.E.C. Is Avoiding Tough Sanctions for Large Banks
By Edward Wyatt
February 3, 2012
WASHINGTON — Even as the Securities and Exchange Commission has stepped up its investigations of Wall Street in the last decade, the agency has repeatedly allowed the biggest firms to avoid punishments specifically meant to apply to fraud cases.

By granting exemptions to laws and regulations that act as a deterrent to securities fraud, the S.E.C. has let financial giants like JPMorganChase, Goldman Sachs and Bank of America continue to have advantages reserved for the most dependable companies, making it easier for them to raise money from investors, for example, and to avoid liability from lawsuits if their financial forecasts turn out to be wrong.

An analysis by The New York Times of S.E.C. investigations over the last decade found nearly 350 instances where the agency has given big Wall Street institutions and other financial companies a pass on those or other sanctions. Those instances also include waivers permitting firms to underwrite certain stock and bond sales and manage mutual fund portfolios.

JPMorganChase, for example, has settled six fraud cases in the last 13 years, including one with a $228 million settlement last summer, but it has obtained at least 22 waivers, in part by arguing that it has “a strong record of compliance with securities laws.” Bank of America and Merrill Lynch, which merged in 2009, have settled 15 fraud cases and received at least 39 waivers.

Only about a dozen companies — Dell, General Electric and United Rentals among them — have felt the full force of the law after issuing misleading information about their businesses. Citigroup was the only major Wall Street bank among them. In 11 years, it settled six fraud cases and received 25 waivers before it lost most of its privileges in 2010…

Read the rest hereS.E.C. Is Avoiding Tough Sanctions for Large Banks Meredith B. Cross, the S.E.C.’s corporation finance director, says the purpose behind offering waivers to Wall Street firms that had settled fraud or lesser charges is to protect investors. By EDWARD WYATTPublished: February 3, 2012 WASHINGTON — Even as the Securities and Exchange Commission has stepped up its investigations of Wall Street in the last decade, the agency has repeatedly allowed the biggest firms to avoid punishments specifically meant to apply to David Ruder, a former S.E.C. chairman. By granting exemptions to laws and regulations that act as a deterrent to securities fraud, the S.E.C. has let financial giants like JPMorganChase, Goldman Sachs and Bank of America continue to have advantages reserved for the most dependable companies, making it easier for them to raise money from investors, for example, and to avoid liability from lawsuits if their financial forecasts turn out to be wrong. An analysis by The New York Times of S.E.C. investigations over the last decade found nearly 350 instances where the agency has given big Wall Street institutions and other financial companies a pass on those or other sanctions. Those instances also include waivers permitting firms to underwrite certain stock and bond sales and manage mutual fund portfolios. JPMorganChase, for example, has settled six fraud cases in the last 13 years, including one with a $228 million settlement last summer, but it has obtained at least 22 waivers, in part by arguing that it has “a strong record of compliance with securities laws.” Bank of America and Merrill Lynch, which merged in 2009, have settled 15 fraud cases and received at least 39 waivers. Only about a dozen companies — Dell, General Electric and United Rentals among them — have felt the full force of the law after issuing misleading information about their businesses. Citigroup was the only major Wall Street bank among them. In 11 years, it settled six fraud cases and received 25 waivers before it lost most of its privileges in 2010. By granting those waivers, the S.E.C. allowed Wall Street firms to have powerful advantages, securities experts and former regulators say. The institutions remained protected under the Private Securities Litigation Reform Act of 1995, which makes it easier to avoid class-action shareholder lawsuits. And the companies continue to use rules that let them instantly raise money publicly, without waiting weeks for government approvals. Without the waivers, the companies could not move as quickly as rivals that had not settled fraud charges to sell stocks or bonds when market conditions were most favorable. Other waivers allowed Wall Street firms that had settled fraud or lesser charges to continue managing mutual funds and to help small, private companies raise money from investors — two types of business from which they otherwise would be excluded. “The ramifications of losing those exemptions are enormous to these firms,” David S. Ruder, a former S.E.C. chairman, said in an interview. Without the waivers, agreeing to settle charges of securities fraud “might have vast repercussions affecting the ability of a firm to continue to stay in business,” he said. S.E.C. officials say that they grant the waivers to keep stock and bond markets open to companies with legitimate capital-raising needs. Ensuring such access is as important to its mission as protecting investors, regulators said. The agency usually revokes the privileges when a case involves false or misleading statements about a company’s own business. It does not do so when the commission has charged a Wall Street firm with lying about, say, a specific mortgage security that it created and is selling to investors, a charge Goldman Sachs settled in 2010. Different parts of the company — corporate officers versus a sales force, for example — are responsible for different types of statements, officials say. “The purpose of taking away this simplified path to capital is to protect investors, not to punish a company,” said Meredith B. Cross, the S.E.C.’s corporation finance director, referring to the fast-track offering privilege. “You’re not seeing the times that waivers aren’t being granted, because the companies don’t ask when they know the answer will be no.” Others, however, argue that the pattern is another example of the government being too soft on Wall Street as it has become a much larger part of the economy in recent decades. President Obama, in his State of the Union addressasked Congress last week for tougher laws that make “the penalties for fraud count.” Federal judges in New York and Wisconsin recently criticized the S.E.C. for its habit of settling cases by allowing companies to promise not to violate the law in the future. The commission has frequently turned the other cheek when the companies again settle similar fraud cases. S.E.C. officials have defended that practice by saying they do not have the resources to take cases to court rather than settle. They recently asked Congress to toughen laws and to raise financial penalties for fraud violations. But the repeated granting of waivers suggests that the agency does in fact have tools it often does not use, critics say. Close to half of the waivers went to repeat offenders — Wall Street firms that had settled previous fraud charges by agreeing never again to violate the very laws that the S.E.C. was now saying that they had broken. Page 2 of 2) Senator Charles E. Grassley, an Iowa Republican who serves on committees that oversee the S.E.C., said he was baffled that the agency had recently asked Congress for more enforcement powers when it had ceded much of the power it already had. “It’s really hard to see why the S.E.C. isn’t using all of its weapons to deter fraud,” he said. “It makes already weak punishment even weaker by waiving the regulations that impose significant consequences on the companies that settle fraud charges. No wonder recidivism is such a problem.” The Times analysis found 11 instances where companies that had settled fraud cases had actually lost the special privilege for fast-track stock or bond offerings, versus 49 times that the S.E.C. granted waivers from the punishment to Wall Street firms since 2005. The analysis counted 91 waivers since 2000 granting immunity from lawsuits, and 204 waivers related to raising money for small companies and managing mutual funds. The S.E.C. does not maintain a central database of how many companies lose special status or are denied waivers. Its records of granted waivers are scattered across several databases on its Web site. JPMorganChase is among the big Wall Street firms that have been granted multiple waivers with nearly every settlement of S.E.C. fraud charges. Last July, it agreed to pay $228 million to settle civil and criminal charges that it cheated cities and towns by rigging bids with other Wall Street firms to invest the money raised by several municipalities for capital projects. JPMorgan received three waivers related to that case for privileges that it otherwise would have lost. But the S.E.C. said the company’s fraudulent actions didn’t involve misleading investors about JPMorgan’s business. “That distinction doesn’t do it for me,” said Richard W. Painter, a corporate law professor at the University of Minnesota and the co-author of a casebook on securities litigation and enforcement. “If a company has trouble telling the truth to investors in one batch of securities it is underwriting, I would not have confidence that it would tell the truth to investors about its own securities.” Despite six securities fraud settlements in 13 years, JPMorgan rarely if ever lost any special privileges. It has been awarded at least 22 waivers since 2003, with most of its S.E.C. settlements generating two or more. In seeking the reprieves, lawyers for JPMorgan stated in letters to the S.E.C. that it should grant a waiver because the company has “a strong record of compliance with the securities laws.” The company declined to comment for this article. Citigroup is one of the rare Wall Street giants that has lost significant privileges recently. In October 2010, the bank paid $75 million to settle charges that it misled investors in 2007 about the size of its holdings of assets backed by subprime mortgages. The company told investors that it had about $13 billion of those risky investments on its balance sheet, when it really had more than $50 billion, according to the S.E.C. Because those accusations involved Citigroup’s statements about its own financial well-being, the company lost for three years the ability to insulate itself from lawsuits over mistaken predictions about its business. It also lost, for the same three years, the exemption for “well-known seasoned issuers,” which allowed it to quickly raise capital in the securities markets. As a result, Citigroup has had to file thousands of pages of new documents with the S.E.C. and wait weeks for the agency’s approvals to make itself eligible to sell stocks, bonds and other securities to the public. Citigroup declined to comment on whether the sanctions have had any effect on its business. Wrangling over waivers is an important part of the negotiations when companies accused of fraud discuss a settlement with the S.E.C., and sometimes it can involve a form of corporate plea bargaining to a lesser charge. In 2009, the S.E.C. was negotiating with Bank of America over charges that it had failed to disclose to shareholders that billions of dollars in bonuses were being paid to Merrill Lynch executives just as Bank of America was bailing out the firm.Because the S.E.C. charges involved fraudulent statements by both Bank of America and Merrill Lynch about their financial status, the merged company was in danger of losing its special privileges for both offerings and forecasts. According to a report by the then-S.E.C. inspector general, H. David Kotz, the waiver issue “was of such importance to B. of A. that the settlement became contingent on B. of A.’s receipt of the waiver.” Bank of America apparently won the argument but would not comment on it. It settled the case by agreeing to a $150 million payment. The S.E.C., however, decided not to charge the bank with fraud, which could have endangered the bank’s special status. Instead, the S.E.C. charged Bank of America with violating disclosure rules for shareholder materials and proxies, and Bank of America kept its privileges. S.E.C. officials said they would not discuss how they arrived at specific settlements and declined to comment on the Citigroup, JP Morgan or Bank of America settlements. Thomas Lee Hazen, a securities law professor at the University of North Carolina at Chapel Hill, said that it is understandable that the S.E.C. might relax some potential sanctions on Wall Street firms — where it appears that lessons have been learned, or when a fine is thought to be sufficient punishment. “The ripple effect of having a sanction that could shut them down or could seriously impede a company’s operations would seriously affect a lot of innocent customers,” he said. “It’s a very fine balance. That’s not to say that the S.E.C. is striking the balance properly. That is in the eye of the beholder.” GOP Seeks ‘Pelosi Provision’ in Insider Trading Bill Wednesday, 08 Feb 2012 02:38 PM By Dan Weil More ways to share… Mixx Stumbled LinkedIn Vine Buzzflash Reddit Delicious Newstrust Technocrati 4 House Republican leaders hope to add a provision to the congressional insider trading bill that would forbid members of Congress from gaining special entrance into initial public offerings (IPOs) of stock. The plank is known as the “Pelosi provision,” a House GOP aide told The Hill.

Pelosi participated in Visa’s 2008 IPO under shady circumstances. While she denied any wrongdoing, a “60 Minutes” report last year cited her and several other members of Congress, suggesting Pelosi and her husband benefited from the Visa IPO at the same time Congress was considering fresh rules for credit card companies.

The “Pelosi Provision” may spark opposition from Democrats. The current legislation has broad support from both sides of the aisle. Pelosi spokesman Drew Hammill declined to comment on the planned provision. “We look forward to reviewing the text of the bill Leader [Eric] Cantor is writing in secret,” he told The Hill.

The Stop Trading on Congressional Knowledge Act, originally offered in the House, has now reached 283 co-sponsors, including 99 Republicans. The Senate overwhelmingly passed its version last week.

Democrats accused Cantor of slowing work on the bill last year, but he has put it at the top of the agenda for 2012.

Read more on Newsmax.com: GOP Seeks ‘Pelosi Provision’ in Insider Trading BillVersion of this article appeared in print on February 3, 2012, on page A1 of the New York edition with the headline: S.E.C. Is Avoiding Tough Sanctions For Large Banks. Sam Zell: Government Hinders Housing Recovery, Creates Mortgage ‘Moral Hazard’ Thursday, 09 Feb 2012 07:30 AM By Forrest Jones More ways to share… Mixx Stumbled LinkedIn Vine Buzzflash Reddit Delicious Newstrust Technocrati    0 Government intervention in the housing sector is doing more harm than good and is actually hurting recovery instead of helping it, says real estate mogul Sam Zell.

President Barack Obama has proposed expanding government efforts to allow millions of struggling homeowners refinance their mortgages.

The problem with government intervention is that it doesn’t allow the market to correct itself and fully recover, Zell says.


“Rather than let the elements of the business world take care of the problems, we basically stopped the process of creating market clearing,” Zell tells CNBC. “
 Had we allowed the market to clear without trying to stop reality…we would have a healthy housing market today.”

One problem facing the housing sector today is that it’s too easy for distressed homeowners to walk away and leave the bank holding the property, Zell says.

“We are the only country in the world where you can borrow money on a house and walk away from it. Everywhere else, all the people in Europe, all the people who borrow money in Brazil, they’re all personally liable for 100 percent of the debt. So by virtue of not being personally liable, we’ve created a giant moral hazard,” Zell says.

That has to change.

“Would I change the policy? Absolutely … I think you have a giant moral hazard that must be eliminated. If you borrow money to buy a house, how you cannot be responsible?”

Experts say Republicans in Congress will kill President Obama’s home refinance proposal anyway due to its increased participation of government in the housing sector.

“The president pretty clearly signaled that [the program] would need some kind of congressional action,” says Brian Gardner, senior vice president of Washington research at Keefe, Bruyette & Woods, according to U.S. News & World Report.

“To the extent that it does, I think it’s D.O.A.”
 © Moneynews. All rights reserved.   President Obama’s 2013 Budget: Five Things You Should Know EBRUARY 14, 2012 BY DAVID ZEILER, Associate Editor, Money Morning U.S. President Barack Obama’s 2013 budget proposal will give Republicans and Democrats plenty to fight about.

The $3.8 trillion budget proposal, submitted to Congress, essentially follows the blueprint President Obama outlined in his State of the Union address

That means fewer spending cuts and more taxes than Republicans will like.

So if you thought last summer’s wrangling over the raising of the debt ceiling was nasty, watch the rhetorical Armageddon when those battles get re-fought in an election year.

President Obama’s 2013 budget sets much of the agenda for the stormy election season ahead. These points will help you make sense of the chaos.  Congress Sets the Budget: The fact is Congress, not the president, ultimately controls the federal purse strings. While much hoopla will accompany President Obama’s 2013 budget, presidential budget proposals often serve more as a political billboard than a framework for how money is collected and spent by the government.

So President Obama’s budget will provide talking points for his 2012 re-election campaign and targets for the Republicans who seek to defeat him. 

“Every budget proposal is partly a serious policy document and partly a political statement,”Stan Collender, a former staffer for both the House and Senate Budget Committees, told msnbc.com.

No Budget, No Problem: Not only can Congress reject the president’s budget, it doesn’t even have to vote on it. Congress has little incentive to vote on the budget this year. In addition to Republican opposition, many Democrats in swing districts won’t want to go on record voting for any kind of tax increase.

Last year the Senate rejected President Obama’s 2012 budget by a 97-0 vote. 

In fact, Congress has not approved a budget for over 1,000 days, getting by with stopgap spending bills in the interim. 

A Taxing Issue: As expected, President Obama’s 2013 budget includes tax increases for the wealthy. That will keep tax issues in the spotlight this year, since Republicans have vowed to oppose tax increases of any kind.

The president included the so-called “Buffett Rule,” which creates a 30% minimum tax for anyone making $1 million or more. It would replace the Alternative Minimum Tax (AMT).

More controversial is the proposal to tax dividends as ordinary income for those making $250,000 and up. Now the top dividends rate is 15%. President Obama would also raise the top rate on taxes on capital gains from 15% to 20%.

Those proposals will help President Obama position himself as a defender of the middle class against the rich, while giving the GOP ammunition to accuse him of “class warfare.” Another Year Older and Deeper in Debt: Although President Obama will say his budget includes $4 trillion in deficit reductions over the next decade, Republicans will tell you that the 2013 budget deficit is $1.33 trillion. 

That’s the fourth straight year the president’s budget deficit has exceeded $1 trillion. Expect to hear a lot about it, as the Republicans will waste no opportunity to remind Americans of President Obama’s promise in 2009 to cut the deficit in half.

It also could reignite the debate over the national debt, which is now over $15 trillion and equal to the country’s annual gross domestic product.

Fuzzy Math: You’d think the government would at least be able to keep accurate figures on how much money it spends, but no. It literally depends on whom you ask. 

For example, the Office of Management and Budget (OMB) put 2010 spending by the Department of Health and Human Services at $854 billion. The Census Bureau says the figure is $944 billion. Differences in accounting methods account for the whopping $90 billion discrepancy.

And that doesn’t get into all the accounting voodoo in the budget itself, which often relies on unrealistic assumptions.

“To Washington, these are rounding errors,” Pete Sepp, executive director of the Alexandria, Virginia-based National Taxpayers Union, told Bloomberg News. “To the rest of America, this is real money that could help real people with real problems.”   http://pro.stansberryresearch.com/1202CHINAPSI/EOILN223/?o=628313&s=632713&u=55292360&l=391971&r=Milo   More ways to share… Mixx Stumbled LinkedIn Vine Buzzflash Reddit Delicious Newstrust Tell my politician Technocrati 
newsletter@globalresearch.ca via globalresearch.ccsend.com   Obama’s Eligibility…Not One Shred of Authentic Verifiable Evidence By Craig Andresen on March 4, 2012 at 1:22 pm In the wake of Sheriff Joe Arpaio’s press conference regarding his Cold Case Posse’s investigation into Obama’s documents, we are left with some questions. These questions are NOT new questions but they bear asking again and now, since an official law enforcement agency has finally investigated and issued a report, perhaps these questions gain in validity. Yes, many others have raised these questions and rightfully so. The questions began nearly 4 years ago but, for the sake of sticking to the documents in question, we will confine our points to questions raised within the last year. On April 25th 2011, Obama “released” his “official certificate of live birth” in a press conference from the white house briefing room. Nearly immediately, those who knew of such things as computers, graphics, layering and such, called into question the process employed in creating this birth certificate. Not for a minute should their efforts be discounted in questioning the validity of it. Indeed, they set the stage for this official law enforcement investigation and without doubt, they deserve credit for their work. The difference is, while they did indeed know their stuff, they were not affiliated with an official law enforcement investigation and therefore, were ripe for ridicule, ripe for what we now KNOW was UNWARRANTED ridicule. Now, to the questions regarding the long form birth certificate which MUST be asked, AGAIN, because of the OFFICIAL LAW ENFORCEMENT INVESTIGATION, conducted by the office of Sheriff Joe Arpaio in Maricopa County Arizona. 1) If a REAL and AUTHENTIC certificate of live birth exists, showing Barack Obama to have been born in Hawaii on August 4th, 1961, why then produce a forgery? Answer 1) He wasn’t born in Hawaii on August 4th, 1961. Answer 2) He was born in a foreign country. Answer 3) Barack Obama Sr. is not his real father. All of these are possibilities in and of themselves or perhaps a combination of them are true. Whatever the truth might be, one truth is clear; there would be no reason whatsoever to manufacture a forged certificate of live birth if an authentic document exists. 2) Since the document in question IS a forgery, WHO forged it? Answer) Sheriff Arpaio clearly stated neither he nor his Cold Case Posse is accusing Obama himself of creating the forgery but he also made clear, they HAVE identified a “Person of Interest” in the creation of the forgery. 3) Did Obama know that he was presenting a forged certificate of live birth on April 25th, 2011? Answer 1) Yes he did. Answer 2) No, he was duped. To believe he was duped, one would have to believe that Obama believed everything which was on that forged certificate was true. He would have to believe he was indeed born in Hawaii, on August 4th, 1961, that Obama Sr. was his father etc when in fact either some of it or all of it was a lie told to him, we can only suspect, by his mother and his family and throughout the years, no one related to him or no one who was a close family friend who knew the truth ever imparted that truth or alluded to it, to Obama. If Obama DID know the document was forged, he perpetrated a fraud upon the American public from the white house briefing room on April 25th, 2011. 4) When was the forged document created? Answer 1) In 1961 Answer 2) In 2008 Answer 3) In 2011 As the technology employed to create this forgery didn’t exist in 1961, it could not have been forged at that time. Had the forgery been created in 2008 or there about, when Obama decided to run for president, why not release it at THAT time rather than wait more than 2 more years? It seems most likely that the forgery was created shortly before its release in April of 2011 in direct response to Trump’s vow to investigate the matter. Now, let’s look at the other document in question regarding the Arpaio investigation…The Obama Selective Service Registration card. Sheriff Arpaio’s Cold Case Posse was able to confirm, just as they did with the long form birth certificate, that the Selective Service Registration card, with 100% certainty, is a forgery. Here are the questions: 1) Why forge a Selective Service Registration card? Answer 1) The authentic card could not be found. Answer 2) Obama never registered for Selective Service. As other cards can easily be found including cards from those who registered for Selective Service in the same United States Post Office as the forged card indicates Obama registered, it would appear to be HIGHLY improbable that Obama’s card has gone missing. It seems much MORE likely that Obama never registered, as was required by law, for Selective Service. 2) When was the forged Obama Selective Service Card created? Answer 1) In 1980 Answer 2) In 2008 Answer 3) in 2011 Here again, if an authentic Selective Service Registration card was ever filled out by Obama in 1980, it would exist today and no forgery would be needed. It is doubtful that the forgery was created in 2011. Most likely, the forgery was created in 2008 as Obama was approaching the nomination. The Cold Case Posse showed how it was most likely created with the focus being the pica date stamp. Since a 1980 (note the 4-digit year number) did not remain in existence in 2008, a 2008 pica date insert was cut in half and the 08 (note the 2 digit year number) was inverted (turned upside down) to record as 80 (again, note the 2 digit year number) which is not at all in accordance with a real pica date stamp used by the United States Post Office. 3) Who forged the Obama Selective Service Registration card? If, as it seems most likely to be, that the Obama Selective Service card forgery was created in 2008, it would appear most likely that it was created by someone within the DNC. This, if it is indeed the case, would be because in the vetting process, at some point, when it became apparent that Obama would be the nominee, certain documents which should exist relating to him, simply didn’t exist and to cover for these missing documents, i.e., the Selective Service Registration, forgeries were then created. 4) Did Obama know his Selective Service Registration card was forged? Answer 1) No, he was duped Answer 2) Yes he did. Only Obama himself would know for sure whether he ever registered for Selective Service. If he did, an authentic Selective Service Card would be in existence today. If he did not, he would know it and the forged Selective Service Registration card in his name, would be known by him, to be a forgery and as that card has been displayed for years, as his, he would have known for years that a forged Selective Service Registration card was being purported as authentic in his name. Finally, the microfilm issue highlighted in the Sheriff Arpaio press conference. One of the questions investigated by the Cold Case Posse revolved around possible entry into the U.S. by Obama’s mother. Anyone entering the United States, citizen, or foreigner, is required to fill out an official card through INS. It is thought that, sometime within the first week of August 1961, Stanley Ann Dunham may have entered the United States from overseas bringing with her, a baby. Suspiciously missing from the INS records thus far investigated was that very week. Microfilm reel #184 shows only a couple of cards before that reel goes blank. Reel #185 picks up with August 8th, 1961. Missing completely are August 1st, 2nd, 3rd, 4th, 5th, 6th and 7th, 1961. 1) When did that week’s record go missing? 2) Who removed that week’s record? 3) Why is it missing? At this point, we have no idea when that single week’s portion of the INS microfilm record went missing. As to who was responsible, we can only guess it rises to a higher level than the DNC. While it would be relatively simple for the DNC to create forged documents to stand in for nonexistent documents, the INS is a federal bureau and missing records are far different from records which never existed. It seems necessary for someone within the INS to have removed any portion of the INS records. This would mean that someone else would have had to facilitated in the call for that portion of the record to have been removed. Did money change hands in this process? Did someone high up in the government instruct someone at INS to remove that portion of the record? Those are questions which now need to be asked and answered. As to WHY that week’s microfilm record is missing, we can only guess that it showed something which would not be conducive to Obama and his election to the office of president. That portion of the INS record could have shown Stanley Ann Dunham and baby arriving in the United States. While this portion of the microfilm record pertains to entries through or across the pacific, the records pertaining to Atlantic entries has not yet been provided but, considering Stanley Ann Dunham then lived in Hawaii, the Pacific entries would be most important. This of course would indicate that the Barack Obama who was elected to the office of President in 2008, may well have been born on foreign soil and regardless of his father’s citizenship status, is FAR, FAR away from being constitutionally eligible to serve as either the President or Vice President of the United States. Connecting the Dots It must be pointed out that connecting these dots is my doing and was not part of the Sheriff Arpaio press conference nor has it been eluded to by the Cold Case Posse. The dots can indeed be connected given the results made known from the Cold Case Posse because of the Arpaio investigation and to do so, we must go back to the top of this article. The long form birth certificate displayed by Obama on April 25th, 2011, has been shown, via this investigation, to be a forgery. If Obama was born outside the country, which may well be indicated by the missing week’s record of microfilm provided by INS, Obama would be a foreigner. As a foreigner, he would not have filed a Selective Service Registration necessitating the need for a forged Selective Service Registration card to be created and if a foreigner, an authentic certificate of live birth simply would not exist in Hawaii which would then have to be provided, in April of 2011, as a forged document. The idea that Obama is a foreigner is also bolstered by another piece of information garnered by the Cold Case Posse. It was clearly stated that the Posse is in possession of a legal affidavit stating that when introduced to Bill Ayers, Obama was introduced as a FOREIGN STUDENT looking for financial aid about his education. From this, only 2 conclusions can be made. 1) Obama WAS indeed a foreign student which would mean he was NOT a United States citizen.2) Obama was masquerading as a foreign student in which case he was perpetrating a fraud. Given the forged birth certificate, the forged Selective Service Registration, and the weeks’ worth of missing INS microfilm records, and his introduction to Ayers as a foreign student, it becomes more probable in connecting the dots, that Obama was indeed foreign born. Anyone, regardless of party affiliation, who is aware of this information and either dismisses it as bull, ignores it or does not, for any reason, believe a full congressional investigation is warranted is actively assisting in the perpetration of fraud and is, in fact, actively engaged in the dismantling of our Constitution. This includes sitting Members of Congress, the media, the RNC, the DNC and citizens at large. Combine what we have been presented via an official law enforcement agency’s investigation with other evidence acquired via investigations such as the apparent fraud regarding Obama’s Social Security number and the only credible conclusion can be that we have no idea who the man occupying our oval office really is. Any state or private entities pursuing the removal of Obama’s name from 2012 ballots must use this evidence, acquired through the Arpaio Cold Case Posse in their legal challenges. The Inescapable Conclusion Forget the valid arguments regarding Obama being ineligible due to the “Natural Born Citizen” clause contained in the Constitution resulting from his father’s lack of citizenship status. At this point, now more than 3 years into his term… Not one single shred of authentic evidence has been presented to prove Barack Obama is even a United States CITIZEN. We have a forged birth certificate, a forged Selective Service Registration, what by all accounts is a fraudulent Social Security number, missing INS records, sworn legal affidavits indicating he was a foreign student…But not one single verified, authentic document proving Obama to be even a United States citizen. Not one. For those who believe this to be purely partisan, think again. If all that is requires for a liberal to serve as President is a handful of forged and fraudulent documents than so too would a conservative be able to point to forgeries and fraud as “proof” of citizenship. If a foreign citizen, of any political party is allowed to serve either as a Member of congress or as President or Vice President, our republic is finished. If, upon such 100% certainty of forgery as exists with Obama’s birth certificate and Selective Service Registration, as shown by a law enforcement entity and verified by forensic document experts is allowed to be considered nothing but a distraction or not worthy of a full and immediate intensive congressional investigation, as it regards our Constitution, national security and the Presidency, duplicity on the part of the Members of congress in allowing the possibility of a foreign national to serve as President today or in the future will be precedent setting. For additional information please see: http://www.thenationalpatriot.com/obamas-eligibility-not-one-shred-of-authentic-verifiable-evidence/#more-4447http://en.wikipedia.org/wiki/Society_for_Worldwide_Interbank_Financial_TelecommunicationBrowse Search QuizzesGamesOn This Day SubscribeLogin Great Recession ARTICLE Introduction & Quick Facts FAST FACTS ADDITIONAL INFO HomePolitics, Law & GovernmentEconomics & Economic SystemsGreat Recession economics [2007–2009] Alternate titles: global recession Print Cite Share More BY Brian Duignan | View Edit History FAST FACTS Facts & Related Content Date:   December 2007 – June 2009 Location:   United States Context:   mortgage subprime mortgage financial crisis of 2007–08 austerity subprime lending See all facts and data → Great Recession, economic recession that was precipitated in the United States by the financial crisis of 2007–08 and quickly spread to other countries. Beginning in late 2007 and lasting until mid-2009, it was the longest and deepest economic downturn in many countries, including the United States, since the Great Depression (1929–c. 1939). The financial crisis, a severe contraction of liquidity in global financial markets, began in 2007 as a result of the bursting of the U.S. housing bubble. From 2001 successive decreases in the prime rate (the interest rate that banks charge their “prime,” or low-risk, customers) had enabled banks to issue mortgage loans at lower interest rates to millions of customers who normally would not have qualified for them (see subprime mortgagesubprime lending), and the ensuing purchases greatly increased demand for new housing, pushing home prices ever higher. When interest rates finally began to climb in 2005, demand for housing, even among well-qualified borrowers, declined, causing home prices to fall. Partly because of the higher interest rates, most subprime borrowers, the great majority of whom held adjustable-rate mortgages (ARMs), could no longer afford their loan payments. Nor could they save themselves, as they formerly could, by borrowing against the increased value of their homes or by selling their homes at a profit. (Indeed, many borrowers, both prime and subprime, found themselves “underwater,” meaning that they owed more on their mortgage loans than their homes were worth.) As the number of foreclosures increased, banks ceased lending to subprime customers, which further reduced demand and prices. As the subprime mortgage market collapsed, many banks found themselves in serious trouble, because a significant portion of their assets had taken the form of subprime loans or bonds created from subprime loans together with less-risky forms of consumer debt (see mortgage-backed security; MBS). In part because the underlying subprime loans in any given MBS were difficult to track, even for the institution that owned them, banks began to doubt each other’s solvency, leading to an interbank credit freeze, which impaired the ability of any bank to extend credit even to financially healthy customers, including businesses. Accordingly, businesses were forced to reduce their expenses and investments, leading to widespread job losses, which predictably reduced demand for their products, because many of their former customers were now unemployed or underemployed. As the portfolios of even prestigious banks and investment firms were revealed to be largely fictional, based on nearly worthless (“toxic”) assets, many such institutions applied for government bailouts, sought mergers with healthier firms, or declared bankruptcy. Other major businesses whose products were generally sold with consumer loans suffered significant losses. The car companies General Motors and Chrysler, for example, declared bankruptcy in 2009 and were forced to accept partial government ownership through bailout programs. During all of this, consumer confidence in the economy was understandably reduced, leading most Americans to curtail their spending in anticipation of harder times ahead, a trend that dealt another blow to business health. All these factors combined to produce and prolong a deep recession in the United States. From the beginning of the recession in December 2007 to its official end in June 2009, real gross domestic product (GDP)—i.e., GDP as adjusted for inflation or deflation—declined by 4.3 percent, and unemployment increased from 5 percent to 9.5 percent, peaking at 10 percent in October 2009. Skip Ad As millions of people lost their homes, jobs, and savings, the poverty rate in the United States increased, from 12.5 percent in 2007 to more than 15 percent in 2010. In the opinion of some experts, a greater increase in poverty was averted only by federal legislation, the 2009 American Recovery and Reinvestment Act (ARRA), which provided funds to create and preserve jobs and to extend or expand unemployment insurance and other safety net programs, including food stamps. Notwithstanding those measures, during 2007–10 poverty among both children and young adults (those aged 18–24) reached about 22 percent, representing increases of 4 percent and 4.7 percent, respectively. Much wealth was lost as U.S. stock prices—represented by the S&P 500 index—fell by 57 percent between 2007 and 2009 (by 2013 the S&P had recovered that loss, and it soon greatly exceeded its 2007 peak). Altogether, between late 2007 and early 2009, American households lost an estimated $16 trillion in net worth; one quarter of households lost at least 75 percent of their net worth, and more than half lost at least 25 percent. Households headed by younger adults, particularly by persons born in the 1980s, lost the most wealth, measured as a percentage of what had been accumulated by earlier generations in similar age groups. They also took the longest time to recover, and some of them still had not recovered even 10 years after the end of the recession. In 2010 the wealth of the median household headed by a person born in the 1980s was nearly 25 percent below what earlier generations of the same age group had accumulated; the shortfall increased to 41 percent in 2013 and remained at more than 34 percent as late as 2016. Those setbacks led some economists to speak of a “lost generation” of young persons who, because of the Great Recession, would remain poorer than earlier generations for the rest of their lives. Losses of wealth and speed of recovery also varied considerably by socioeconomic class prior to the downturn, with the wealthiest groups suffering the least (in percentage terms) and recovering the soonest. For such reasons, it is generally agreed that the Great Recession worsened inequality of wealth in the United States, which had already been significant. According to one study, during the first two years after the official end of the recession, from 2009 to 2011, the aggregate net worth of the richest 7 percent of households increased by 28 percent while that of the lower 93 percent declined by 4 percent. The richest 7 percent thus increased their share of the nation’s total wealth from 56 percent to 63 percent. Another study found that between 2010 and 2013 the aggregate net worth of the richest 1 percent of Americans increased by 7.8 percent, representing an increase of 1.4 percent in their share of the nation’s total wealth (from 33.9 percent to 35.3 percent). As the financial crisis spread from the United States to other countries, particularly in western Europe (where several major banks had invested heavily in American MBSs), so too did the recession. Most industrialized countries experienced economic slowdowns of varying severity (notable exceptions were ChinaIndia, and Indonesia), and many responded with stimulus packages similar to the ARRA. In some countries the recession had serious political repercussions. In Iceland, which was particularly hard-hit by the financial crisis and suffered a severe recession, the government collapsed, and the country’s three largest banks were nationalized. In Latvia, which, along with the other Baltic countries, was also affected by the financial crisis, the country’s GDP shrank by more than 25 percent in 2008–09, and unemployment reached 22 percent during the same period. Meanwhile, SpainGreeceIrelandItaly, and Portugal suffered sovereign debt crises that required intervention by the European Union, the European Central Bank, and the International Monetary Fund (IMF) and resulted in the imposition of painful austerity measures. In all the countries affected by the Great Recession, recovery was slow and uneven, and the broader social consequences of the downturn—including, in the United States, lower fertility rates, historically high levels of student debt, and diminished job prospects among young adults—were expected to linger for many years. Brian Duignan Learn More in these related Britannica articles: United States: Tackling the Great Recession, the Party of No, and the emergence of the Tea Party movement …referred to as the “Great Recession” (which officially dated from December 2007 to June 2009 in the United States), included the most dismal two-quarter period for the U.S. economy in more than 60 years: GDP contracted by 8.9 percent in the fourth quarter of 2008 and by 6.7 percent…   BY The Editors of Encyclopedia Britannica | View Edit Historydepression, in economics, a major downturn in the business cycle characterized by sharp and sustained declines in economic activity; high rates of unemploymentpoverty, and homelessness; increased rates of personal and business bankruptcy; massive declines in stock markets; and great reductions in international trade and capital movements. A depression may also be defined as a particularly severe and long-lasting form of recession, where the latter is generally understood, relative to a national economy, as a period of at least two consecutive quarters of decline in real (inflation-adjusted) GDP, or gross domestic product. According to the National Bureau of Economic Research, which maintains records of the cyclical peaks and troughs in U.S. economic activity dating to 1854, a recession is “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales,” while a depression is “a particularly severe period of economic weakness” that is commonly understood to last from the onset of economic decline to the return of normal economic activity. Although there is no specific definition of depression that all economists accept (and thus no universal agreement about how many depressions the United States has experienced since 1854), economic historians generally agree that the Great Depression that began in 1929 was the worst economic downturn in U.S. history and indeed the worst ever experienced by the Western industrialized world. In the United States, for example, industrial production fell nearly 47 percent, GDP declined by 30 percent, and unemployment reached more than 20 percent in the period between 1929 and 1933. Great Depression: breadline Breadline in New York City’s Bryant Park during the Great Depression. Encyclopedia Britannica, Inc. READ MORE ON THIS TOPIC economic stabilizer: Model of a Keynesian depression Another possible cause of a general depression was suggested by Keynes. It may be approached in a highly simplified way…   Various factors are thought to have given rise to the Great Depression, whose primary cause was a dramatic decline in spending, or aggregate demand. They included the U.S. stock market crash of 1929, which had a devastating effect on consumer confidence throughout the country; banking panics, which caused many banks to fail and thereby greatly reduced consumer spending and business investment; the contractionary monetary policy of the Federal Reserve (the central bank of the United States), which also stifled spending and investment and led to deflation; the international gold standard, which served to spread the U.S. downturn to other countries; and protectionist policies in several countries, including the United States, whose cumulative effect was to reduce international trade. Beginning in the 1930s, countries around the world implemented policies designed to prevent another downturn on the scale of the Great Depression and to moderate the worst effects of ordinary recessions. The changes included increased government regulation of the financial and banking industries, the use of expansionary monetary and fiscal policies to stimulate economic growth, and direct government assistance to the poor and unemployed (see also social welfare program). Britannica This article was most recently revised and updated by Brian Duignan, Senior Editor. Learn More in these related Britannica articles:   economic stabilizer: Model of a Keynesian depression Another possible cause of a general depression was suggested by Keynes. It may be approached in a highly simplified way by lumping all occupations together into one labor market and all goods and services together into a single commodity market. The aggregative…     liberalism: Problems of market economies …that came to be called depressions. Finally, those who owned or managed the means of production had acquired enormous economic power that they used to influence and control government, to manipulate an inchoate electorate, to limit competition, and to obstruct substantive social reform. In short, some of the same forces…                                                              

 

                                                          

              













                                       

Bibliography of the late, great aftermath of the 2008 financial Wall Street Crisis
In 2008 a financial crisis enveloped America and spread to the world.  We apparently had not learned “our lesson” from previous financial crises. This one involved fancy Wall Street shorts and options and insurance, almost as if “someone” at the “top” –  (“someone[s]”)  –  wanted to play with the markets and make a lot of money – also by controlling – not only the people in America but people all over the world; indeed, like a deadly virus out of a Bruce Willis 1995 Twelve Monkeys movie where James COLE sees 99% of the population whiped out or THE 2011 Rise of the Planet Of The Apes  movie where the 113 serum has a viral effect on humans, whipping out the human race, the 2008 financial crisis also spread around the world.
The following is a cavalcade of events in the news outlining the cause, progression and fruition of that “versus”.
Bradley Keoun and Phil Kuntz – Aug 22, 2011 –  7:19 AM EST
Chief executive officers from eight of the largest U.S. banks receiving government aid testify at a House Financial Services Committee hearing in Washington, D.C on Feb. 11, 2009.
Aug. 22 (Bloomberg) — The Federal Reserve’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money. The largest borrower, Morgan Stanley, got as much as $107.3 billion, while Citigroup Inc. took $99.5 billion and Bank of America Corp. $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress. Erik Schatzker and Sara Eisen report on Bloomberg Television’s “Inside Track.” (Source: Bloomberg)
Aug. 22 (Bloomberg) — Robert Eisenbeis, chief monetary economist at Cumberland Advisors Inc., talks about $1.2 trillion of public money the U.S. Federal Reserve secretly loaned to Wall Street banks and other companies. Eisenbeis, speaking with Mark Crumpton on Bloomberg Television’s “Bottom Line,” also discusses the outlook for Fed monetary policy and the U.S. economy. (Source: Bloomberg)
Aug. 21 (Bloomberg) — Robert E. Litan, a former Justice Department official who in the 1990s served on a commission probing the causes of the savings and loan crisis, now vice president at the Kansas City, Missouri-based Kauffman Foundation, Richard Herring, a finance professor at the University of Pennsylvania, Roger Lister, a former Fed economist who’s now head of financial-institutions coverage at credit-rating firm DBRS Inc., and Kenneth Rogoff, a former chief economist at the International Monetary Fund and now an economics professor at Harvard University, talk about the U.S. government’s $1.2 trillion bailout of the banking system and the outlook for regulatory overhaul of the industry. (Source: Bloomberg)Play Video
Aug. 22 (Bloomberg) — Neil Barofsky, former special inspector general for the Troubled Asset Relief Program and a Bloomberg Television contributing editor, talks about the Federal Reserve’s emergency loans during the financial crisis. Fed Chairman Ben S. Bernanke’s effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.  Barofsky speaks with Erik Schatzker on Bloomberg Television’s “Inside Track.” (Source: Bloomberg)Play Video
Aug. 22 (Bloomberg) — Charles Peabody, an analyst at Portales Partners LLC, and Bloomberg reporter Bradley Keoun discuss the Federal Reserve’s emergency lending programs and the capital position of U.S. banks.  They speak with Erik Schatzker and Michael McKee on Bloomberg Television’s “Inside Track.” (Source: Bloomberg)
Wall Street Aristocracy Got $1.2 Trillion From Fed



Citigroup Inc. and Bank of America Corp. were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.
Citigroup Inc. and Bank of America Corp. were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever
Lloyd Blankfein, CEO of Goldman Sachs; Jamie Dimon, CEO of JPMorgan Chase and Co.; Robert  P.Kelly, CEO of the Bank of New York; Ken Lewis, CEO of the Bank of America; Ronald E. Logue, CEO of State Street; John Mack, CEO of Morgan Stanley; Vikram Pandit, CEO of Citigroup; and John Stumpf, CEO of Wells Fargo, testify during the House Financial Services oversight hearing of the Troubled Assets Relief Program (TARP). Two weeks after Lehman Brothers Holdings Inc.’s bankruptcy triggered a global credit crisis, Morgan Stanley countered concerns that it might be next to go by announcing it had ‘strong capital and liquidity positions.’
Two weeks after Lehman Brothers Holdings Inc.’s bankruptcy triggered a global credit crisis, Morgan Stanley countered concerns that it might be next to go by announcing it had ‘strong capital and liquidity positions.’ A Wall Street sign stands outside the New York Stock Exchange in New York, U.S. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.
A Wall Street sign stands outside the New York Stock Exchange in New York, U.S. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret. Citigroup Inc., along with Morgan Stanley and Citigroup Inc., were the biggest borrowers under seven U.S. Federal Reserve emergency-lending programs.
Citigroup Inc., along with Morgan Stanley and Citigroup Inc., were the biggest borrowers under seven U.S. Federal Reserve emergency-lending programs. The Federal Reserve provided as much as $1.2 trillion in public money to banks and other companies from August 2007 through April 2010 to head off a depression.
The Federal Reserve provided as much as $1.2 trillion in public money to banks and other companies from August 2007 through April 2010 to head off a depression. Source: Bloomberg
Morgan Stanley, along with Citigroup Inc., and Bank of America Corp., were the biggest borrowers under seven Fed emergency-lending programs. The three banks’ combined $298.2 billion in hidden Fed loans was triple what they received in publicly disclosed bailouts from the U.S. Treasury.
Morgan Stanley, along with Citigroup Inc., and Bank of America Corp., were the biggest borrowers under seven Fed emergency-lending programs. The three banks’ combined $298.2 billion in hidden Fed loans was triple what they received in publicly disclosed bailouts from the U.S. Treasury. Bank of America Corp., along with Morgan Stanley and Citigroup Inc. was one of the biggest borrowers under the U.S. Federal Reserve’s emergency-lending programs. The three banks’ combined $298.2 billion in hidden Fed loans was triple what they received in publicly disclosed bailouts from the U.S. Treasury.
Bank of America Corp., along with Morgan Stanley and Citigroup Inc. was one of the biggest borrowers under the U.S. Federal Reserve’s emergency-lending programs. The three banks’ combined $298.2 billion in hidden Fed loans was triple what they received in publicly disclosed bailouts from the U.S. Treasury. The Royal Bank of Scotland took $84.5 billion in loans from the U.S. Federal Reserve’s emergency-lending programs.
The Royal Bank of Scotland took $84.5 billion in loans from the U.S. Federal Reserve’s emergency-lending programs. UBS AG, Switzerland’s biggest bank, got $77.2 billion in loans from the U.S. Federal Reserve’s emergency-lending programs.
UBS AG, Switzerland’s biggest bank, got $77.2 billion in loans from the U.S. Federal Reserve’s emergency-lending programs. Goldman Sachs Group Inc., the fifth-biggest U.S. bank by assets.
Goldman Sachs Group Inc., the fifth-biggest U.S. bank by assets. U.S. Federal Reserve borrowings by Societe Generale SA, France’s second-biggest bank, peaked at $17.4 billion in May 2008, four months after the Paris-based lender announced a record 4.9 billion-euro ($7.2 billion) loss on unauthorized stock-index futures bets by former trader Jerome Kerviel.
months after the Paris-based lender announced a record 4.9 billion-euro ($7.2 billion) loss on unauthorized stock-index futures bets by former U.S. Federal Reserve borrowings by Societe Generale SA, France’s second-biggest bank, peaked at $17.4 billion in May 2008, four trader Jerome Kerviel.
Finance ‘Aristocracy’ Took $1.2 Trillion in Loans

U.S. Federal Reserve borrowings by Societe Generale SA, France’s second-biggest bank, peaked at $17.4 billion in May 2008, four months after the Paris-based lender announced a record 4.9 billion-euro ($7.2 billion) loss on unauthorized stock-index futures bets by former trader Jerome Kerviel.
U.S. Federal Reserve borrowings by Societe Generale SA, France’s second-biggest bank, peaked at $17.4 billion in May 2008, four months after the Paris-based lender announced a record 4.9 billion-euro ($7.2 billion) loss on unauthorized stock-index futures bets by former trader Jerome Kerviel. Citigroup Inc. (C) and Bank of America Corp. (BAC) were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.
By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until nowthe full amounts have remained secret.
Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley (MS), got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.
“These are all whopping numbers,” said Robert Litan, a former Justice Department official who in the 1990s served on a commission probing the causes of the savings and loan crisis. “You’re talking about the aristocracy of American finance going down the tubes without the federal money down the tubes without the federal money.”

Foreign Borrowers

It wasn’t just American finance.

Almost half of the Fed’s top 30 borrowers, measured by peak balances, were European firms. They included Edinburgh-based Royal Bank of Scotland Plc, which took $84.5 billion, the most of any non-U.S. lender, and Zurich-based UBS AG (UBSN), which got $77.2 billion. Germany’s Hypo Real Estate Holding AG borrowed $28.7 billion, an average of $21 million for each of its 1,366 employees.

The largest borrowers also included Dexia SA (DEXB), Belgium’s biggest bank by assets, and Societe Generale SA, based in Paris, whose bond-insurance prices have surged in the past month as investors speculated that the spreading sovereign debt crisis in Europe might increase their chances of default.

The $1.2 trillion peak on Dec. 5, 2008 — the combined outstanding balance under the seven programs tallied by Bloomberg — was almost three times the size of the U.S. federal budget deficit that year and more than the total earnings of all federally insured banks in the U.S. for the decade through 2010, according to data compiled by Bloomberg.

Peak Balance

The balance was more than 25 times the Fed’s pre-crisis lending peak of $46 billion on Sept. 12, 2001, the day after terrorists attacked the World Trade Center in New York and the Pentagon. Denominated in $1 bills, the $1.2 trillion would fill 539 Olympic-size swimming pools.

The Fed has said it had “no credit losses” on any of the emergency programs, and a report by Federal Reserve Bank of New York staffers in February said the central bank netted $13 billion in interest and fee income from the programs from August 2007 through December 2009.

“We designed our broad-based emergency programs to both effectively stem the crisis and minimize the financial risks to the U.S. taxpayer,” said James Clouse, deputy director of the Fed’s division of monetary affairs in Washington. “Nearly all of our emergency-lending programs have been closed. We have incurred no losses and expect no losses.”

While the 18-month U.S. recession that ended in June 2009 after a 5.1 percent contraction in gross domestic product was nowhere near the four-year, 27 percent decline between August 1929 and March 1933, banks and the economy remain stressed.

Odds of Recession

The odds of another recession have climbed during the past six months, according to five of nine economists on the Business Cycle Dating Committee of the National Bureau of Economic Research, an academic panel that dates recessions.

Bank of America’s bond-insurance prices last week surged to a rate of $342,040 a year for coverage on $10 million of debt, above where Lehman Brothers Holdings Inc. (LEHMQ)’s bond insurance was priced at the start of the week before the firm collapsed. Citigroup’s shares are trading below the split-adjusted price of $28 that they hit on the day the bank’s Fed loans peaked in January 2009.

The U.S. unemployment rate was at 9.1 percent in July, compared with 4.7 percent in November 2007, before the recession began.

Homeowners are more than 30 days past due on their mortgage payments on 4.38 million properties in the U.S., and 2.16 million more properties are in foreclosure, representing a combined $1.27 trillion of unpaid principal, estimates Jacksonville, Florida-based Lender Processing Services Inc.

Liquidity Requirements

“Why in hell does the Federal Reserve seem to be able to find the way to help these entities that are gigantic?” U.S. Representative Walter B. Jones, a Republican from North Carolina, said at a June 1 congressional hearing in Washington on Fed lending disclosure.

“They get help when the average businessperson down in eastern North Carolina, and probably across America, they can’t even go to a bank they’ve been banking with for 15 or 20 years and get a loan.”

The sheer size of the Fed loans bolsters the case for minimum liquidity requirements that global regulators last year agreed to impose on banks for the first time, said Litan, now a vice president at the Kansas City, Missouri-based Kauffman Foundation, which supports entrepreneurship research.

 August 24, 2011 – By Keith Fitz-Gerald, Chief Investment Strategist, Money Morning
Lloyd Blankfein, chief executive officer of Goldman Sachs Group Inc. (NYSE: GS), has hired high-profile criminal defense lawyer Reid Weingarten.   This is a game changer even if we don’t yet know where the fire is. Blankfein has led the firm for six years and spent the past two dealing with allegations of conflicts of interest and fraud. A Senate report released in April said Goldman dumped subprime loan exposure onto unsuspecting clients during the mortgage meltdown and then in 2010 gave Congress misleading testimonials about the firm’s actions. So far, Blankfein has not been accused of any crime or crimes. That means, and I cannot stress this strongly enough, that he is innocent in the court of law – even if he is held slightly above pond scum in the court of public opinion for his and Goldman’s role in causing the financial crisis. Under the circumstances, I cannot help but wonder:
Is the U.S. government’s investigation into Goldman Sachs (and other financial houses) gaining momentum and has the government notified Blankfein that he is a person of interest in one or more of those cases?
Is there a whistleblower inside Goldman, or are there key players who have “rolled over” in an attempt to protect themselves?
Is Blankfein retaining Weingarten personally on his nickel? If so, at whose direction? (I also can’t help but wonder if Goldman’s interests and those of its senior executives have separated as a result of the increased legal scrutiny…)
Could Blankfein have some sense of what’s in the wind and simply be making a preemptive grab to obtain the best counsel before others who also will need criminal counsel do the same thing?
Or is there something as simple as a conflict of interest that has yet to emerge publicly?
At this point there are more questions than answers…but I have a feeling this won’t remain the case for long.
Allegations against Goldman of trading against its clients and favoring certain clients over others will not fade quietly into the night this time around, with the global financial crisis having wiped a whopping 
$28 trillion from global markets in 2008.
The news of Blankfein’s hire pushed down Goldman shares 4.7% late Monday to close at $106.51.

August 24, 2011 – By Keith Fitz-Gerald, Chief Investment Strategist, Money Morning
I hate to sound alarmist, but it looks as though the European banking system – and consequently the global banking system – is edging its way towards another epic collapse. That means in just a few short months, stocks could be back at their 2009 lows while gold prices travel north of $2,500 an ounce. This is the worst-case scenario that’s been bandied about ever since Europe’s debt problems first came to light.  How do we know that this is what’s happening? Because somebody is having trouble obtaining the money they need — and they just borrowed it from the lender of last resort. The European Central Bank (ECB) last week lent $500 million dollars to an undisclosed Eurozone bank through a credit mechanism that had been dormant for the past 12 months, with the exception of one $70 million draw in February.
This comes as no surprise – the warning signs have always been there.  In fact, 
I warned Money Morning readers just a few weeks ago that the Eurozone could have its own American International Group Inc. (NYSE: AIG) – or worse, its own Lehman Bros. Holdings Inc. (PINK:LEHMQ) – lurking somewhere in the shadows. Still, while this may not surprise you, it certainly surprised the heck out of the rose-colored glasses crowd that can’t seem to understand the European sovereign debt crisis is finally about to wash up on our shores.  That’s why stocks in the United States and around the world have taken such a brutal beating recently. Officially the story is about the renewed worries over Europe’s debt crisis and U.S. data that suggests we’re once again sliding into a recession.  But what’s really happening is that global traders are moving quickly to liquidate holdings and raise cash while they can. That’s why so-called risk assets like stocks, corporate bonds, industrial metals, oil and higher-yielding junk instruments are tanking, as gold, the dollar and the yen are bucking up. The U.S. Federal Reserve already is engaging in damage control. President of the Federal Reserve Bank of New York William Dudley has said the risks of a double-dip recession are “quite low,” despite anemic growth. And it’s been rumored that U.S. Federal Reserve Chairman Ben S. Bernanke will telegraph new monetary stimulus measures Friday during his speech in Jackson Hole, WY. But really, who are they kidding? This crisis has nothing to do with liquidity (which is how the central bankers are trying to fight it) and everything to do with solvency (which is how they should be fighting it). Not only are the risks of a global recession mounting by the minute, but I believe the concentration of risks is approaching critical mass.
A Return to 2008.  First take a look at the Euribor-OIS swap (the spread between the Euro Interbank Offer